FCPO Commentary on 23/03/09

FCPO 3rd month June Futures contract surge RM74 higher to close at RM1985 as compare to previous trading session with 14813 lots traded in the market. CPO price was trader higher through the entire trading session as crude oil and soybean starts electronic surge up due to news release regarding about the increment of export tax.

Technically, CPO price surge up fiercely after manage to break from the minor falling wedge in the hourly chart Fibonacci support seen at RM1910 regions. We expect there would be mild retracement for CPO price trading after completed 61.8% Fibonacci projection at RM1985 levels. Traders were advice to hold long position around support levels at RM1940 and RM1927 regions. Resistances were seen at RM1990 and RM2040 levels.