CPO Daily Commentary for 18th Jan 2010

CPO 3rd month Mac futures contract traded RM43 points lower as compare to previous trading sessions to close at RM2487 with a total of 12,428 lots traded in the market. CPO price plunge lower during trading sessions as crude oil and soybean oil electronic trading were traded lower despite of favorable export figure shows increment of 2% from total export amount as compare previous month on the same period.
CPO price manage break lower than previous low at RM2480 after manage to make a rebound of 61.8% Fibonacci resistance levels at RM2530 regions and 38.1% Fibonacci levels at RM2492 regions. Technically, CPO price possible to complete wave C around support levels at RM2427 and RM2357 regions; both were 50% and 61.8% Fibonacci support levels in the hourly chart. It’s crucial in order for CPO price would not trade lower than the support levels in order for uptrend to remain intact on long term basis. Resistance levels remain seen at RM2530 and RM2570 regions