FCPO Commentary on 23/12/09

CPO 3rd month Mac futures contract plunge RM40 points lower as compare to previous trading sessions to close at RM2515 with a total of 5,916 lots traded in the market. CPO price plunge lower during trading session as soybean oil were traded weak during overnight trading session despite crude oil was closed firm on overnight trading.

CPO price plunge below RM2560 region upon open for trading and continue trade lower without significant rebound activity. Technically, CPO price seems manage to rest above 78.6% Fibonacci support level at RM2517 regions which directly same levels with upwards support trend line in the hourly and daily price chart. Support levels at RM2517 and RM2490 view vital for bull trend to remain intact in the medium term. Resistances levels were seen at RM2560 and RM2600.