CPO Daily Commentary 070110

CPO 3rd month Mac futures contract traded RM20 points higher as compare to previous trading sessions to close at RM2702 with a total of 8,912 lots traded in the market. CPO price manage to surge higher despite soybean oil and crude oil overnight and electronic trading were traded weak. CPO price traded lower before end of session due to minor profit taking activity.
CPO price encounter some selling pressure at 300% Fibonacci resistance level at RM2726 regions before traded lower to form wave 4 which manage to reach 61.8% Fibonacci support levels at RM2694 region. Technically, CPO price is likely to surge higher in the coming trading sessions provided support levels at RM2690 and RM2673 regions were not violated during trading sessions. CPO price would encounter some great selling pressure around resistance level at RM2735 and RM2760 regions; both are 178.6% and 250% Fibonacci resistance levels in the CPO hourly price chart.