FCPO Commentary on 23/01/09

FCPO 3rd month April Futures contract surge RM61 higher to close RM1870 as compare to previous trading session with 8028 lots traded in the market. CPO was traded higher during last hour trading session before closing as soybean oil and crude oil electronic trading seems on some positive trading.

Technically, finally CPO price manage to breach the trend line in the hourly chart but only surge fiercely during last 2 hour trading session before close. We expect CPO price already finish the correction phase and will continue traded higher in the coming trading session provided support levels at RM1800 and RM1830 were not violated. Traders were advice to hold long position in the coming trading while be cautious around the resistance levels at RM1890 and RM1920 region.