FCPO Commentary on 14/01/10

CPO 3rd month Mac futures contract traded RM46 points lower as compare to previous trading sessions to close at RM2510 with a total of 12,392 lots traded in the market. CPO price continue to plunge lower for 5th consecutive trading days as soybean oil and crude oil were plunge lower during overnight and electronic trading.

CPO price recovered mild after manage to meet support levels at RM2482 regions; 100% and 123.6% Fibonacci support levels, with significant spike up in traded volume; highest amount since last 5 trading days. Technically, CPO price is possible to count as complete wave 2 in the hourly chart at RM2481 levels only with condition support levels at RM2482 must not be violated during trading sessions. Breach of support levels at RM2482 shall indicate alternative count where next support levels seen at RM2427 regions. However, CPO price would indicate further buying signal if resistance levels at RM2590 and RM2647 were violated in the coming trading sessions.