FCPO Commentary on 12/01/09

FCPO March futures contract traded RM55 higher compare to previous trading session and close at RM1920 with a total 8059 lots traded in the market. CPO price was traded mainly sideways as market seems consolidate after moves volatile since last week.

Technically, CPO price seem temporary supported above RM1860 region while also encounter great resistance at RM1960 region. We expect CPO price would retrace further in the coming trading session around support levels at RM1800 and RM1740 region. We would suggest traders to hold short position in the coming trading session while resistance levels at RM1960 and RM2000 must not be violated.