Olam 110608

After hiting a high of 3.19 on 30 may, Olam plunge 55 cents to close at 2.58 today. Olam formed a Dragonfly Doji on 9 jun. Since the trend prior to the Doji was a downtrend, it should have indicated a reverse of the downtrend (i.e. a Bullish Dragonfly Doji). However, the trading next 2 days proved otherwise.

On the otherhand, if we had looked at the trend since since the low of 1.62 on 20 mar, Olam had been on the uptrend since, meaning that the Doji was indicating a Bearish Dragonfly Doji. Was the drop yesterday and today an exception? Or a prelude of more of the same ?

The next few days could give us a clue. If Olam breaks the 2.48 support (blue ...), and then the 2.36 support (green ...), it could strengthen the momentum of the downtrend as indicated by the Dragonfly Doji on 9 jun.

If Olam manages to consolidate on either of the 2 supports, we could see Olam pushing up even higher. But I guess if there really was a consolidation, it would be for a long period.



For tomorrow :

Support @ 2.53 (low blue), 2.485 (low pink), 2.48 (blue ...), 2.414 (low red), 2.36 (green ...)
Resistance @ 2.56 (upp red), 2.60 (pink ...), 2.63 (upp pink, pink --), 2.74 (red --), 2.78 (upp blue)

Hope you find my analysis helpful. Thank you !!