FCPO Daily Commentary 22nd Jan 2010

CPO 3rd month Apr futures contract traded RM44 higher to close at RM2488 levels as compare to previous trading sessions with a total of 11,489 lots traded in the market. CPO price surge higher as soybean oil and crude oil electronic trading rose during 2nd trading sessions despite opened lower as soybean oil and crude oil overnight trading were traded weak.
CPO price manage to surge higher after manage to reach RM2410 support levels; 61.8% Fibonacci support levels, after manage to complete several Fibonacci cluster at RM2410 regions. Technically, CPO price are highly possible to reverse back to uptrend after MACD shows 2nd bull divergence appear in the hourly price chart together with other technical indicators as well. CPO price would further confirmed reverse to bull trend on short term wave count provided support levels at RM2410 and RM2430 were not violated during trading session while resistance levels were seen at RM2510 and RM2530 regions.