FCPO Commentary on 16/12/09

CPO 3rd month Feb futures contract ended RM12 points higher as compare to previous trading sessions to close at RM2525 with a total of 4,493 lots traded in the market. CPO price were mainly traded sideways as soybean oil and crude oil manage to recover from earlier selling pressure during morning sessions.

CPO price was traded higher steadily after opened lower during morning sessions and manage to pause around 50% Fibonacci resistance levels at RM2540 regions. Based on our technical view, Guppy Multiple Moving Average show CPO price seems temporary supported around RM2490 and RM2510 region while moving averages seems expanding in the hourly chart. Resistance levels at RM2540 and RM2590 would expected be tested provided support levels were not violated during trading sessions.