Olam 180708

Olam tested the 2.04 support (pink --) the next day after I posted my last analysis on Olam (15 jul). It tested the 2.04 support again today, but closed right on the 2.09 support (red --).

Olam is another one of those commodity counters that have been badly hit, although its decline wasn't as dramatic as Indofood Agri's, but just as bad (or even worse) if you look at the amount it has lost since its peak of 3.19 on 30 may - lost 1.15, which is about 36% !

If the commodity sector continues to weaken, we could see Olam revisiting the 1.62 low it hit on 20 mar. We could see Olam repeating its trading pattern like those in june and early july, whereby it traded sideways before weakening to a new low.



For monday :

Support @ 2.09 (red --), 2.06 (mid red), 2.03 (low pink, pink --, low green), 1.94 (low red)
Resistance @ 2.16 (green --), 2.20 (blue --), 2.21 (mid pink), 2.27 (red ...), 2.30 (upp red)