FCPO Commentary on 23/02/09

FCPO May futures contract traded RM25 lower compare to previous trading session and close at RM1834 with a total 6788 lots traded in the market. CPO price was trading mainly sideways during trading session but plunge down during last trading hours before market close.

Technically, CPO price seems fails to breach 100 – days and 80 – days moving average in the hourly chart despite several attempts during the trading session. We expect CPO price seems temporary supported on 61.8% and 78.6% Fibonacci support levels at RM1830 and RM1810 region. Traders were advice to hold long position only if support levels were not violated. Resistances levels were seen at RM1890 and RM1950 regions.