FCPO Commentary on 22/12/09

CPO 3rd month Mac futures contract plunge RM65 points lower as compare to previous trading sessions to close at RM2555 with a total of 6,105 lots traded in the market. CPO price plunge lower as soybean oil was trade weak during long holiday period while electronic trading didn’t show interest of recovery after heavy sell down.

CPO price plunge below RM2600 since open for trading but manage to rebound 61.8% Fibonacci resistance levels of intraday range at RM2573 regions. Technically, CPO price seems possible to complete wave C where objective price at RM2541 regions; 61.8% Fibonacci and 261.8% Fibonacci support levels. CPO price would remain intact with bull trend provided support levels at RM2540 and RM2488 were not violated during trading sessions. However, resistance levels were expected at RM2596 and RM2620; mark of previous high and low of the recently sell down.