FCPO Commentary on 20/03/09

FCPO 3rd month May Futures contract rise marginally RM6 higher to close at RM1911 as compare to previous trading session with 12384 lots traded in the market. CPO price was surprisingly traded lower during the trading session despite announcement of increment of Export tax by Argentina being release during the trading session.

Technically, CPO price seems attempt to breach the support levels at 1900 region during the last trading session. We seen CPO price attempt to break down from the rising wedge in the hourly price chart. Traders were advice to trade CPO cautiously and wait for confirmation for CPO price to break down from the rising wedge formation. Support levels were seen at RM1900 and RM1870 region while resistance seen at RM1950 and RM1982 regions.