FCPO Commentary on 24/03/09

FCPO 3rd month June Futures contract rose RM45 higher to close at RM2030 as compare to previous trading session with 9269 lots traded in the market. CPO price surge after crude oil and soybean oil electronic trading open and traded higher before CPO was start traded.

Technically, CPO price manage to complete 50% Fibonacci projection at RM2049 levels and encounter great selling pressure around the resistance trend line. We expect CPO price would trade lower into the rising wedge trading range provided resistance levels at RM2050 and RM2087 were not violated. Trader were advice to hold short position in the coming trading session while be extra cautious around support levels at RM1910 and RM1960 region.