FCPO Commentary on 26/03/09

FCPO 3rd month June Futures contract fall marginally RM8 lower to close at RM1972 as compare to previous trading session with 5763 lots traded in the market. CPO price seems traded sideways throughout the trading session despite soybean oil and crude oil were traded lower during the trading session.

Technically, CPO price seems temporary support above 61.8% Fibonacci retrace levels at RM1950 levels while CPO price still remain trading within rising wedge formation. We expect CPO price would trade higher in the coming trading session provided support levels at RM1950 and RM1910 were not violated. Failure to hold against the selling pressure above the support levels shall indicate massive selling signal towards RM1750 regions. Traders were advice to hold long position in the coming trading session while be alert on the resistance levels at RM1980 and RM2030 regions.