FCPO Daily Commentary 25th Feb 2010

CPO 3rd month May futures contract traded RM45 lower to close at RM2590 levels as compare to previous trading sessions with a total of 7,177 lots traded in the market. CPO price plunge lower as crude oil and soybean oil overnight and electronic trading were traded weak despite short fall at US inventory as announce in yahoo finance news.
CPO price continue to plunge lower after penetrate previous support levels at RM2620 regions after manage to rebound mildly around 38.1% Fibonacci resistance levels at RM2635 regions. Technically, CPO price view with further confident on correction count as wave C count was initiate in the previous trading sessions where nearest support levels seen at RM2582 and RM2550 regions. However, we do anticipate some rebound due to some profit taking from previous bear rally where resistance levels were spotted at RM2613 and RM2631 regions; both are 38.1% and 61.8% Fibonacci resistance levels