FCPO Commentary on 22/12/08

FCPO February futures contract close marginally RM9 lower as compare to previous trading session at RM1536 with a total of 4628 lots traded in the market. CPO price was mainly traded within RM1540 to RM1510 region throughout the whole trading session as crude oil and soybean oil were moving volatile without certain direction.

Technically, CPO price manage to cover gap from the previous trading session after opened lower during trading session. CPO price was seen breakdown from descending triangle support line at RM1540 while manage to test the next support level at RM1527 region. As from our previous commentary, we expect CPO price would trade lower to test support levels at RM1490; 61.8% Fibonacci retracement figure and RM1430 region before starts to traded higher again. Traders were advice to hold short position for short term trading around being cautious around the resistance levels at RM1580 and RM1620 region.