FCPO Commentary on 21/01/10

CPO 3rd month Apr futures contract traded RM46 lower to close at RM2444 levels as compare to previous trading sessions with a total of 11,500 lots traded in the market. CPO price traded sideways during trading sessions despite wild trading days for crude oil and soybean oil electronic trading during trading sessions.

CPO price manage to trade around 150% and 61.8% Fibonacci support levels at RM2446 to RM2440 regions after penetrate previous support levels at RM2460 regions. Technically, CPO price still shows no sign of reversal since previous rebound at RM2500 regions. However, we anticipate strong support levels at RM2427 and RM2360 regions; both at 50% and 61.8% Fibonacci support levels, in order for CPO price to remain intact with bull trend on the medium term. Resistance levels were seen at RM2475 and RM2510 level.