Olam 150708

Olam broke the 2.27 support (red ...) today, after trading sideways since the beginning of jul. It also broke the long term downtrend support (mid pink) and 2.20 support level (blue --).

Olam closed right on the downtrend support (mid red) and 2.16 support (green --). Today's breakdown was also accompanied by an increased in volume, which usually doesn't bode well.

Olam could have formed a Head & Shoulders (a broader one) which I've indicated on the chart. Neckline looks to be at the 2.60 level. Since the peak is 3.19 (30 may), which gives us a difference of almost 60 cents. So we could be looking at Olam hitting a low of around 2.00 (2.60 - 0.60) before there could be any chance of a reversal.

Going back to the trendlines, what this means is that we could see Olam weakening further, and testing the 2.04 support (pink --) sooner rather than later. The last time we saw Olam hitting such low prices was in mar.



For tomorrow :

Support @ 2.16 (green --), 2.13 (mid red), 2.10 (low pink, red --), 2.04 (pink --), 2.02 (low red)
Resistance @ 2.20 (blue --), 2.22 (mid pink), 2.27 (red ...), 2.31 (low green), 2.36 (green ...)

Hope you find my analysis helpful. Thank you for your support !!