FCPO Commentary on 10/12/08

FCPO 3rd month February futures contract rose RM56 to closed RM1555 as compare to previous trading session with 6782 lots traded in the market. CPO price was traded wild during trading session as soybean oil and crude oil electronic starts to retrace mildly after traded high in the previous trading session.

Technically, as our expectation, CPO price was traded higher after but starts to retrace 38.1% Fibonacci retrace figure at RM1490 region before surge toward RM1560 region again. We expect CPO price would be traded sideways towards RM1650 region in a large symmetric triangle formation. Traders were advice continue to hold long position in the coming trading session around support region at RM1500 and RM1530 while being cautious around resistance levels at RM1600 and RM1620.