Olam 300508

Not only did Olam break the 2.97 resistance (blue --), we also saw Olam smashing the uptrend resistance (low green), and long term downtrend resistance (upp pink). Initially, there was a possibility of Olam weakening when it tested the downtrend support (upp red) and even the long term downtrend support (low pink).

However, things swung dramatically after Olam hit the long term downtrend resistance (low pink). Olam began to reverse and there were tremendous buying, pushing Olam up to the 3.18 neckline (blue ...), before closing just below the uptrend resistance (upp green).

From the volume distribution, we can see a huge bar around the 3.11 - 3.13 region (red ...). So if Olam were to open below this level (red ...) on monday, this block would become a mountainous block for Olam to overcome.

If this happens, we could see Olam softening to the 3.03 level, where the long term downtrend support (upp pink) is located. And if that breaks, the next support looks to be around the 2.97 level (blue --).

If Olam opens above the 3.13 level (red ...), and breaks the uptrend resistance (upp green), and the 3.18 neckline (blue ...), we might see Olam flying to the 3.30 resistance (green --)



For monday :

Support @ 3.13 (red ...), 3.057 (low green), 3.032 (upp pink), 2.97 (blue --), 2.935 (upp blue), 2.836 (upp red), 2.822 (low pink), 2.74 (red --)

Resistance @ 3.13 (red ...), 3.17 (upp green), 3.18 (blue ...), 3.30 (green --)

Good Luck !!