FCPO Commentary on 07/01/09

FCPO 3rd month March Futures contract surge RM143 higher to close RM1980 as compare to previous trading session with 11170 lots traded in the market. CPO price was opened slightly higher and continue to trade higher with high volatility throughout the entire trading session.

Technically, CPO today reached 150% Fibonacci projection figures at RM1981 regions after been surge up for 7 consecutive days. We expect CPO would trade higher in the coming trading session while expecting great selling pressure around RM2040 and RM2200 region; both 161.8% and 261.8% Fibonacci projection figures. Traders were advice to hold long position in the coming trading session provided if support levels at RM1940 and RM1870 region were not violated.