FCPO Commentary on 03/12/08

FCPO February futures contract retrace RM25 lower compare to previous trading session and close at RM1603 with a total 5598 lots traded in the market. CPO price was traded lower yesterday as crude oil and soybean oil overnight trading plunge during the trading session but manage to recover as electronic trading shows signs of recovery.

Technically, CPO price retrace 61.8% Fibonacci retracement figures at RM1570 region and surge up during 2nd trading session after breach the neckline resistance levels at RM1580 complete double bottom formation at RM1560 regions. Traders were advice traders to hold long position in the coming trading provided if CPO price manage to breach resistance levels at RM1642 and RM1670 region while supports were seen at RM1597 and RM1570 region.