FCPO Commentary on 18/12/08

FCPO 3rd month March Futures contract close RM35 higher to close RM1580 as compare to previous trading session with 4063 lots traded in the market. CPO price was opened higher due to firm crude oil and soybean oil electronic trading while waiting for OPEC meeting on 17th Dec 2008.

Technically, CPO price mainly traded sideways upwards and forms flag formation in the hourly chart which rebound levels were seen at 50% Fibonacci retracement levels. We expect CPO price would traded further lower in the coming trading session to challenge next support region RM1530 and RM1500. However, we still view CPO price slowly emerging a healthy up trend in the coming trading session. Traders were advice to hold long position around the support level at RM1530 and RM1500 region. Resistances seen at RM1600 and RM1650 levels.