FCPO Daily Commentary 16th Mar 2010

FPO 3rd month May futures contract traded RM59 lower to close at RM2590 levels as compare to previous trading sessions with a total of 12,602 lots traded in the market. FCPO price traded lower since open for trading sessions as soybean oil and crude oil were traded lower during overnight and electronic trading despite favorable export figure were release during trading sessions.

FCPO price opened lower and continue to test next nearest support levels at RM2610 region; 78.6% Fibonacci support levels but only manage to hold nearly 2 hours before selling pressure overcome support activity and tested next support levels at RM2590 regions; 178.6% Fibonacci support levels. Technically, FCPO wave C count to meet objective support levels at RM2557 and RM2518; both were 50% and 61.8% Fibonacci support levels. Failure hold FCPO price to trade above the support levels shall further indicates larger correction phase to take in place. FCPO price would expect to trade lower provided resistance levels at RM2650 and RM2677 were not violated during trading sessions.