FCPO Commentary on 14/01/09

FCPO 3rd month March Futures contract plunge RM158 lower to close RM1830 as compare to previous trading session with 12278 lots traded in the market. CPO was traded lower throughout the entire trading session as crude oil and soybean oil was traded weak during overnight trading session.

Technically, CPO price seem stop around RM1790; 50% Fibonacci retrace level and 100% Fibonacci projection levels. We expect CPO price would traded higher in the coming trading session as correction was expect completed around RM1800 regions. Traders were advice to hold long position in the coming trading session while being cautious around the resistance levels at RM1900 and RM 1940. Supports were seen at RM 1800 and RM1730 regions