FCPO Commentary on 25/11/09

CPO 3rd month Feb futures contract traded RM8 points lower as compare to previous trading sessions to close at RM2478 with a total of 10,069 lots traded in the market. CPO price was traded lower during early session as soybean oil and crude oil were traded weak as they plunge lower after huge upwards swing due to heavy profit taking activities.

Technically, CPO price manage to close higher after manage to reach 61.8% Fibonacci support levels at RM2430 regions. Based on our technical view, CPO price seems to consolidate provided CPO price manage break resistance level RM2481 and RM2505 regions. Our opinion suggests CPO price would only confirm intact with bull rally provided CPO price manage to hold above RM2505 regions at all time. However, traders were advice to long position with long on average strategy in the coming trading sessions with support levels at RM2428 and RM2360 regions.