FCPO Daily Commentary 27th Jan 2010

CPO 3rd month Apr futures contract plunge RM62 lower to close at RM2407 levels as compare to previous trading sessions with a total of 13.659 lots traded in the market. CPO price opened lower and traded lower due to soybean oil and crude oil weak trading on overnight sessions and electronic trading sessions as premium pricing on the winter season ended in the western countries.
CPO price closed par as previous low level at RM2407 after manage to penetrate previous support levels at RM2455 and RM2434 regions. Technically, CPO price would being triggered further selling activities provided support levels at RM2400 and RM2358; both were 61.8% Fibonacci support levels in the hourly chart. Failure to hold above support levels at RM2400 shall indicates short term bear trend for CPO price while long term support still remain at RM2120 region. However, CPO price shall encounter some degree of selling pressure around resistance levels at RM2448 and RM2512 regions provided CPO price was riding on bear market on short term basis.