FCPO Commentary on 16/12/08

FCPO 3rd month February futures contract close marginally RM5 lower to close RM1576 as compare to previous trading session with 2925 lots traded in the market. CPO price was opened higher due strong price trading for crude oil and soybean oil electronic but latter retrace back possibly because of some profit taking activities.

Technically, CPO price seems to support above the RM1575 support region after fails to breach the 23.6% Fibonacci projection resistance levels at RM1625 region. We expect CPO price would be trading lower in the coming trading session as hourly showing CPO price seems to traded sideways within RM1700 and RM1400 range. Traders were advice to hold short position for short term trading provided if the resistance levels at RM1630 and RM1680 were not violated while supports were seen at RM1550 and RM1500 region.