CPO Daily Commentary for 19th Jan 2010

CPO 3rd month Mac futures contract traded marginally RM5 points lower as compare to previous trading sessions to close at RM2490 with a total of 11,566 lots traded in the market. CPO price plunge lower upon opening for trading as soybean oil and crude oil were traded lower during overnight and electronic trading but CPO price manage to recover from losses due to heavy profit taking activity as CPO price has been traded lower for 6 consecutive trading days.
CPO price encounter some buying interest around support levels at RM2440 regions; 150% Fibonacci support levels despite we anticipate strong support levels at RM2427 regions; 161.8% and 50% Fibonacci support levels. CPO price manage to rebound 61.8% Fibonacci resistance levels at RM2495 regions before end of trading sessions. Technically, CPO price shows interest of buying activity around support levels at RM2440 while we still anticipate stronger support levels at RM2427 and RM2357 regions in order for CPO price to remain traded on a bull rally. CPO price must be traded above resistance levels at RM2530 and RM2590 in order for short term bearish sentiment reverse bullish in the coming trading sessions.