Olam 220908

Although Olam managed to break the downtrend resistance (upp red) last friday, more importantly, Olam still fail to break the 2.09 neckline, despite all the recent furore in the financial world. Incidentally, the 2.09 neckline is also near where the uptrend resistance (upp green) and downtrend resistance (upp pink) meets.

Moreover, by closing at the opening price, Olam formed a Gravestone Doji, which usually indicates a major trend reversal. And since it was on the up since 16 sep, this does not bode well for Olam.

You can also see that the Doji Olam formed on 8 sep also has its opening and closing price at the 2.00 level. At that time, I said that if Olam fails to break the 2.09 neckline, we could see it trading between the 1.96 support (blue ...), 2.04 neckline (pink ...). Looking at the situation now, we could see Olam weakening further to the 1.88 support (pink --).



For tomorrow :

Support @ 1.96 (blue ...), 1.946 (low pink), 1.88 (upp red, pink --), 1.817 (low green)
Resistance @ 2.04 (pink ...), 2.09 (red --), 2.10 (upp pink), 2.106 (upp green), 2.16 (green --)