FCPO Commentary on 11/01/10

CPO 3rd month Mac futures contract fall marginally RM4 points lower as compare to previous trading sessions to close at RM2626 with a total of 11,347 lots traded in the market. CPO price manage to rebound higher after fall for 3rd consecutive trading sessions as soybean oil was continue to trade lower despite crude oil was holding well against the selling pressure.

CPO price seems manage to hold above 50% Fibonacci support levels at RM2604 regions after consolidate for almost 3 hours within range from RM2605 and RM2595 regions before manage to surge higher during 2nd trading sessions. Technically, CPO price would view remain intact with bullish sentiment provided support levels at RM2574 and RM2482; both were 61.8% and 100% Fibonacci support levels, were not violated during trading sessions. CPO price were expected to encounter certain degree of selling pressure around resistance levels at RM2673 and RM2700; both were 61.8% and 78.6% Fibonacci resistance levels.