FCPO Commentary on 13/01/10

CPO 3rd month Mac futures contract traded RM29 points lower as compare to previous trading sessions to close at RM2556 with a total of 9,501 lots traded in the market. CPO price sideways after open lower in the morning sessions due to weak soybean oil overnight and electronic trading.

CPO price consolidate within range from RM2550 to RM2565 regions after gap down lower from previous trading sessions. CPO price seems temporary supported above 78.6% Fibonacci support levels at RM2535 regions after manage to meet 78.6% Fibonacci projection figure at RM2541 regions. Technically, CPO price would reverse to medium term uptrend provided support levels at RM2538 and RM2482 were holding well against the selling pressure in the coming trading sessions. However, further selling pressure would occur if support level fails to hold. Resistance levels were seen at RM2600 and RM2650 regions.