FCPO Commentary on 06/02/09

FCPO 3rd month April Futures contract closed RM34 higher to close RM1879 as compare to previous trading session with 6904 lots traded in the market. CPO price was traded higher electronic trading for crude oil and soybean oil were holding firm.

Technically, CPO price surge higher after manage to breach RM1850, 23.6% Fibonacci projection levels. Based on our technical analyst, we expect CPO price would trade higher in the coming trading session strictly provided if support levels at RM1800 and RM1720 were not violated. Traders were advise to hold long position in the coming trading session while be cautious around resistance levels at RM1933 and RM2000 region.