FCPO Commentary on 11/12/08

FCPO 3rd month February futures contract rose RM40 to closed RM1595 as compare to previous trading session with 5460 lots traded in the market. CPO price was opened higher due to crude oil and soybean oil strong electronic trading during the trading session.

Technically, as our expectation, CPO price was traded higher during previous trading session and seems to encounter great resistance around RM1600 levels; but manage to hold above 61.8% Fibonacci retrace levels at RM1577. We expect CPO price would trade higher in the coming trading session provided if support levels at RM1570 and RM1490 region were not violated. However, traders were advice hold long position once CPO price was seems support while being cautious around hourly CPO price trend line at RM1680 and RM1723 regions.