FCPO Commentary on 16/02/09

FCPO 3rd month April Futures contract surge RM67 higher to close at RM1995 as compare to previous trading session with 8516 lots traded in the market. CPO price was traded higher during trading session due to strong soybean oil and crude oil electronic trading.

Technically, CPO price confirmed falling wedge formation after manage to breach the resistance levels at RM1938 and RM1960 region. We expect CPO price would trade higher in the coming trading session provided if support levels at RM1910 and RM1720 were not violated. Traders were advice to long position in the coming trading session while being cautious around resistance levels at RM2003 and RM2060 regions.