FCPO Commentary on 03/12/09

CPO 3rd month Feb futures contract traded RM6 points lower as compare to previous trading sessions to close at RM2489 with a total of 6,971 lots traded in the market. CPO price was traded sideways due to mix reaction on soybean oil and crude oil electronic trading during trading sessions despite both were closed firm during overnight trading.

Technically, CPO price was seen fail to penetrate 78.6% Fibonacci resistance levels at RM2504 regions after 2 attempts to penetrate the resistance levels while manage to retrace 38.1% from previous low at RM2445 regions. Based on our technical view, CPO price seems formed minor descending triangle in the 15 min price chart with nearest support seen at RM2483 regions while down slope resistance trend line. Our opinion suggests CPO price would only continue trade higher once manages to penetrate resistance levels at RM2495 and RM2521 regions. Traders were advice to hold long position once resistances levels were breach convincingly while support levels were seen at RM2477 and RM2445 regions.