FCPO Daily Commentary 29th Jan 2010

CPO 3rd month Apr futures contract traded RM22 higher to close at RM2451 levels as compare to previous trading sessions with a total of 10.411 lots traded in the market. CPO price opened and traded higher during trading sessions as crude oil and soybean oil electronic trading were traded positively despite both product plunge during overnight trading.
CPO price traded higher after attempt to penetrate support levels at RM2400 regions in the previous trading sessions despite new low from last attempt at RM2393 levels. Technically, CPO price seems encounter some resistance levels at RM2469 regions. 78.6% Fibonacci resistance levels in the hourly price chart. Current situation for CPO price trading seems crucial as the Bull and Bear seems embattling within range from RM2400 to RM2500 regions. It’s important for CPO price to remain trading above support levels at RM2434 and RM2410 regions which directly indicate short term reversal towards bullish after CPO price have been traded lower for 4 consecutive weeks. Resistance levels were seen at RM2490 and RM2530 regions.