FCPO Commentary on 30/12/09

CPO 3rd month Mac futures contract traded RM2 points lower as compare to previous trading sessions to close at RM2590 with a total of 4,909 lots traded in the market. CPO price opened higher due to strong soybean oil overnight trading but settled marginally lower due to some profit taking activity.

CPO price false break above previous high at RM2628 but lose strength after fail to penetrate resistance trend line in the hourly price chart. Technically, CPO price seems trading within a broadening resistance and support trend line in the hourly price chart. CPO price starts plunge lower after manage to rebound 61.8% Fibonacci resistance levels at RM2620 regions. CPO price seems undergo some complex correction phase provided resistance levels at RM2628 and RM2658 were penetrate in the coming trading sessions in order for the bull rally to resume. Short term support levels seen at RM2557 and RM2482 regions.