FCPO Commentary on 01/12/08

FCPO February futures contract retrace RM28 lower compare to previous trading session and close at RM1632 with a total 6365 lots traded in the market. CPO price plunge from RM1685 region before closing due heaving profit taking activities after 4 days surge up consecutively.

Technically, CPO price plunge from RM1689 region after encounter great selling pressure at RM1700 region; 23.6% Fibonacci projection figures. However, we would recommend traders to continue to hold long position around the support region at RM1620 andRM1540 in the coming trading session provided CPO price seems temporary holding against the selling pressure. We expect CPO price would continue to surge up towards RM1770 in the coming trading session provided support regions were not violated.