FCPO Commentary on 071209

CPO 3rd month Feb futures contract surge RM84 points higher as compare to previous trading sessions to close at RM2562 with a total of 10,412 lots traded in the market. CPO price was traded higher during 2nd trading session as soybean oil electronic trading was traded higher due to news released regarding on the lower production expectation as the peak season of high production just ended.

Technically, CPO price seems temporary resisted by 123.6% Fibonacci resistance levels at RM2600 regions after manage to break up from a symmetric triangle formation. Based on our technical view, CPO price would expect to encounter some selling pressure around RM2600 levels. However, CPO price would still seen intact with bull rally provided support levels at RM2510 and RM2463 were violated during trading sessions. Our opinion suggests CPO price would continue to trade higher in the coming trading sessions. Traders were advice to apply long on dip strategy in the coming trading sessions while be cautious around resistance levels at RM2604 and RM2651 regions.