FCPO Commentary on 03/04/09

FCPO 3rd month June Futures contract surge RM89 higher to close at RM2159 as compare to previous trading session with 13846 lots traded in the market. CPO price was traded higher throughout the entire trading session as crude oil and soybean oil electronic trading were trade higher during trading session.

Technically, CPO price continue to surge up after break up from the upper trend line at RM2050 regions but seems encounter great selling pressure at 138.1% Fibonacci projection at RM2173 levels. We expect CPO price would trade high as riding on bull rally recently. However, we expect CPO price would retrace mildly in the coming trading session around support levels at RM2093 and RM2042 regions. Traders were advice to hold long position around support levels while be alert around resistance levels at RM2175 and RM2210.