FCPO Commentary on 19/02/09

FCPO 3rd month April Futures contract fall RM20 lower to close at RM1875 as compare to previous trading session with 8105 lots traded in the market. CPO price plunge as soybean oil and crude oil closed weak during overnight trading session.

Technically, CPO price manage to hold against the selling pressure above 50% Fibonacci figure and RM1840 region which also 278.6% Fibonacci projection figures levels. We expect CPO price would trade higher in the coming trading session provided support levels at RM1840 and RM1810 were not violated. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM1900 and RM1930 regions.