FCPO Commentary on 21/01/09

FCPO February futures contract traded RM32 lower compare to previous trading session and close at RM1827 with a total 7760 lots traded in the market. CPO price was traded lower due to Domino effect of Crude Oil futures plunge during overnight trading session.

Technically, CPO price tested support levels at RM1800 for the 3rd time during trading session but RM1800 levels seems holding well against the selling pressure. Based on Parabolic SAR, we suspect a falling wedge was formed in the hourly chart. We expect CPO price would trade higher in the coming trading session provided support levels at RM1800 and RM1730 were not violated. Traders were advice to hold long position in the coming trading session while being cautious around resistance levels at RM1872 and RM1913 regions.