FCPO Commentary on 28/12/09

CPO 3rd month Mac futures contract traded RM50 points higher as compare to previous trading sessions to close at RM2554 with a total of 4,306 lots traded in the market. CPO price manage to rebound higher as crude oil and soybean oil were traded firm during overnight and electronic trading despite CPO price encounter great profit taking activities during previous trading sessions.

CPO price rebound fiercely after were traded lower in the 3 consecutive days in the past trading session. Technically, CPO price seems manage to rebound 61.8% Fibonacci resistance levels at RM2572 regions before encounter some great selling pressure which subsequently form a long headed Doji in the hourly price chart. Based on Fibonacci calculation, CPO would encounter great selling pressure around 61.8% and 78.6% Fibonacci resistance levels at RM2572 and RM2600 regions where there is a gap seen in the hourly and daily chart. Uptrend would resume provided traded price must be able to penetrate above resistance levels at RM2600 and RM2628 regions while support levels at RM2482 and RM2393 are able to hold against the selling pressure.