FCPO Commentary on 15/12/09

CPO 3rd month Feb futures contract fall RM17 points lower as compare to previous trading sessions to close at RM2513 with a total of 6,511 lots traded in the market. CPO price was traded lower as soybean oil and crude oil electronic trading were traded lower during trading sessions.

CPO price recovered from early sell down during session open for trading as previous low price was traded on RM2489. Based on our technical view, CPO price have yet to penetrate resistance trend line in the hourly chart around RM2420 region. Our opinion suggests CPO price would remain bullish only provided short term support levels at RM2490 and RM2426; both were 23.6% and 38.1% Fibonacci support levels were not violated during trading sessions. Resistance levels were seen at RM2525 and RM2535 regions.