FCPO Commentary on 26/01/10

CPO 3rd month Apr futures contract traded RM14 higher to close at RM2469 levels as compare to previous trading sessions with a total of 6,725 lots traded in the market. CPO price opened higher as export figure from ITS and SGS shows favorable interest on CPO demand despite crude oil and soybean oil overnight trading were closed weak sessions despite opened lower as soybean oil and crude oil overnight trading were traded weak.

CPO price manage holding above support levels at RM2455 regions; 78.6% Fibonacci support levels and penetrate above resistance trend line; previous high regions at RM2483 regions in the hourly price chart. CPO price seems holding above the trend line after several attempts to trade lower the trend line. Technical, we anticipate CPO price traded on wave count 3 provided support levels at RM2455 and RM2434 must not violated during trading sessions while resistance levels were seen at RM2512 and RM2543 regions.