FCPO Commentary on 02/12/08

FCPO February futures contract retrace marginally RM4 lower compare to previous trading session and close at RM1628 with a total 7482 lots traded in the market. CPO price was traded lower yesterday as crude oil and soybean oil electronic trading was traded lower during the trading session.

Technically, CPO price seems temporary supported at RM1600 and RM1594 region; 50% Fibonacci retrace figures from RM1496 to RM1692 range. Provided if support levels at RM1600 and RM1550 were not violated, CPO price were expected to surge towards RM1770 region. Traders were advice to hold long position around the support region at RM1600 and RM1550 while being cautious around resistances area at RM1708 and RM1770 region.