FCPO Commentary on 29/12/09

CPO 3rd month Mac futures contract traded RM38 points higher as compare to previous trading sessions to close at RM2592 with a total of 5,917 lots traded in the market. CPO price was traded higher during trading session despite ITS and SGS export report shows significant drop on the export volume as compare to same period of last month.

CPO price continue to rebound higher during trading session and manage to reach same level of high as compare previous 2nd highest levels at RM2605 regions after manage to penetrate shortly above 78.6% Fibonacci resistance levels at RM2598 regions to cover the previous gap regions. Technically, CPO price seems form a head and shoulder formation in the hourly price chart provided resistance levels at RM2606 and RM2628 were not violated in the coming trading sessions. Buying interest would be expect to anticipate around support levels at RM2558 and RM2529 regions.