FCPO Commentary on 09/12/08

FCPO February futures contract rose RM37 higher compare to previous trading session and close at RM1499 with a total 7829 lots traded in the market. CPO price recovered despite of crude oil plunge during overnight trading session.

Technically, CPO price manage to hold against the selling pressure above the support level at RM1410 after been tested the 3rd time on 78.6% Fibonacci retracement figures and C wave complete and 161.8% Fibonacci projected figures. Traders were advice to hold long position in the coming trading session for long term positioning as we expect CPO price would be riding on bull rally in the coming trading session. However, critical support levels at RM1400 must not be violated in the coming trading session. Resistances were seen at RM1510 and RM1580 region.