FCPO Commentary on 19/1/09

FCPO 3rd month April Futures contract rebound RM27 higher to close RM1833 as compare to previous trading session with 7133 lots traded in the market. CPO was traded
Wild as crude oil and soybean oil was struggling to decide price direction.

Technically, CPO price seems tested support levels RM1800 the 3rd time during trading session but fails to penetrate the support levels. We expect CPO price would trade higher in the coming trading session as support levels RM1800; 50% Fibonacci retracement figure seems well support against the selling pressure. Traders were advice to hold long position in the coming trading session provided supports level at RM1800 and RM1730 were not violated. Resistances were seen at RM1890 and RM1930.