FCPO Commentary on 08/01/09

FCPO 3rd month March Futures contract rise RM5 higher to close RM1985 as compare to previous trading session with 17145 lots traded in the market. CPO price was opened higher but trading volatile throughout entire trading session due heavy profit taking activities.

Technically, CPO reach 600% Fibonacci projection figures around RM2060 region and heavy profit taking activities takes place when temporary support levels fails to hold against the selling pressure. We expect CPO price would trade lower towards support levels at RM1900 and RM1850 region in the coming trading session. Traders were advice to long position in the coming trading session provided resistance levels at RM1985 and RM2060 were not violated.