FCPO Commentary on 31/03/09

FCPO 3rd month June Futures contract fall mildly RM20 lower to close at RM1970 as compare to previous trading session with 5900 lots traded in the market. CPO price was seen holding during the trading session despite crude oil and soybean oil plunge during electronic trading session.

Technically, CPO price seems holding well above 80 – day and 100 – day moving average in the hourly price chart. We expect CPO price still traded sideways within the rising wedge in the hourly price where critical resistance levels seen at RM1990 and RM2035 region. Traders were advice to hold short position in the coming trading session if support levels at RM1950 and RM1890 were violated; provided resistance levels were not violated.