FCPO Daily Commentary 19th Feb 2010

CPO 3rd month Apr futures contract traded RM28 lower to close at RM2600 levels as compare to previous trading sessions with a total of 4,721 lots traded in the market. CPO price mainly consolidate during trading sessions but close lower on closing as crude oil and soybean oil electronic trading were traded weak during trading sessions.
CPO price seems fail to penetrate resistance levels at RM2626 regions, 261.8%, 61.8% and 161.8% Fibonacci resistance levels after attempt to rebound until RM2617 regions, 50% Fibonacci resistance levels. Technically, CPO price seems trading lower after reached top at RM2626 region despite we anticipate around RM2655 regions; 78.6% Fibonacci resistance levels. CPO price seem break down from head and shoulder formation in the hourly price chart formation where we anticipate next nearest support seen at RM2575 and RM2545 regions. However, CPO price would view trading on medium term uptrend provided support levels were not violated in the coming trading sessions. Resistance levels were seen at RM2655 and RM2726 regions.