FCPO Commentary on 26/02/09

FCPO 3rd month May Futures contract rose RM23 higher to close at RM1894 as compare to previous trading session with 7076 lots traded in the market. CPO price was traded higher during trading session due to crude oil and soybean oil overnight strong closing.

Technically, CPO seems break up from the trading range of RM1830 and RM1880 levels after 5 consecutive trading days. We expect CPO price would continue to trade higher in the coming trading session provided support levels at RM1880 and RM1830 were not violated. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM1910 and RM1945 regions.