FCPO Commentary on 15/12/08

FCPO February futures contract plunge RM63 lower compare to previous trading session and close at RM1581 with a total 4517 lots traded in the market. CPO price plunge despite strong overnight closing for crude oil and soybean oil.

Technically, CPO seems failed to breach the resistance levels at RM1680 region on the 3rd attempt and manage to pull back 50% Fibonacci retracement levels at RM1570 region. Based on hourly chart wave count, we expect CPO would challenge the next resistance level at RM1680 and RM1723 region again before starts to retrace back for sideways trading again. Traders were advice to hold long position around the support levels at RM1570 and RM1550 region in the coming trading session.