FCPO Commentary on 04/12/09

CPO 3rd month Feb futures contract traded RM11 points lower as compare to previous trading sessions to close at RM2478 with a total of 4,212 lots traded in the market. CPO price was mainly traded sideways during trading sessions despite crude oil and soybean oil were traded firm during overnight and electronic trading.

Technically, CPO price manage to rebound 50% as compare to previous day high at RM2510 regions and seems possible to a minor upwards flag formation. Based on our technical view, CPO price was spotted formed at larger size of symmetric triangle in the hourly price chart where resistance levels were seen at RM2492 and RM2500 regions. Based on our opinion, we suggest CPO price would likely to trade sideways until traded price manage to penetrate either support or resistance trend line in the coming trading sessions. Traders were advice to continue hold long position provided support levels at RM2470 and RM2445 regions were not violated in the coming trading sessions.