FCPO Commentary on 13/01/09

FCPO 3rd month March Futures contract rose RM68 higher to close RM1988 as compare to previous trading session with 5117 lots traded in the market. CPO was opened higher and traded wild despite that crude oil was traded on the weak side throughout the entire trading session.

Technically, CPO was seen manage to rebound 61.8% Fibonacci rebound level at RM1985 levels to cover the gap at RM1996 regions. We expect CPO price would trade lower in the coming trading session provided if resistance levels at RM2000 and RM2020 were not violated. Traders were advice to hold short position in the coming trading session while being cautious around the support levels at RM1960 and RM 1860 region.