FCPO Commentary on 12/12/08

FCPO 3rd month February futures contract rose RM49 to closed RM1644 as compare to previous trading session with 5325 lots traded in the market. CPO price was open lower than expectation as crude oil and soybean oil close firm during overnight trading but CPO price seem traded higher as foreign commodity market electronic trading higher during trading session.

Technically, CPO price seems encounter great selling pressure around RM1680 region after been trading higher for 4 consecutive trading sessions. We expect CPO price would be trading within the hourly trend line price range as market seems need some fresh leads to boost up for price movement. Traders were advice to take profit from the previous long position provided if resistance levels at RM1700 and RM1720 were not violated. Nearest supports were seen at RM1620 and RM1575 region while critical support seems at RM1400 region.