FCPO Commentary on 27/02/09

FCPO 3rd month May Futures contract closed marginally RM4 lower at RM1890 as compare to previous trading session with 5513 lots traded in the market. CPO price seems trade lower during the trading session as soybean oil and crude oil electronic trading traded lower despite closed firm during overnight trading.

Technically, CPO price was traded within a downtrend channel in the 15 min chart. We expect CPO price would trade higher in the coming trading session as flag formation was seen in 15min CPO price chart. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM1905 and RM1945 region. Supports were seen RM1880 and RM1830 levels.