FCPO Commentary on 24/12/09

CPO 3rd month Mac futures contract traded RM21 points lower as compare to previous trading sessions to close at RM2494 with a total of 6,089 lots traded in the market. CPO continue to trade lower during trading sessions as soybean oil was traded weak during overnight and electronic trading on Domino effect as both are edible oil.

CPO price plunge lower after traded below the support trend line in the hourly price chart where previous support levels seen at RM2517 regions. Technically, CPO price plunge lower as previous support levels fail to hold against the selling pressure at RM2517 regions. However, selling pressure has been held effectively at RM2481; 23.6% Fibonacci support levels range from RM2012 to RM2628 regions. Failure to hold above RM2488 levels indicates CPO price likely traded in short term bearish zone where critical resistance levels seen at RM2555 and RM2600 regions while support levels remain seen at RM2481 and RM2319 regions.