FCPO Commentary on 05/01/09

FCPO February futures contract surge RM45 higher compare to previous trading session and close at RM1740 with a total 5382 lots traded in the market. CPO price was traded higher due to crude oil and soybean strong overnight closing.

Technically, CPO price was traded higher after breach the resistance trend line at RM1640. However, based on the RSI and Stochastic hourly chart shows some overbought activities. We expect some mild retracement for CPO price in the coming trading session around support at RM1660 and RM1600 region. However, traders were advice to hold long position in the coming trading session. Resistances were seen at RM1770 and RM1820 region.