Olam 300908

Since our last discussion on 22 sep where Gravestone Doji was formed, Olam broke the 1.96 support (blue ...) the next day and continued to weaken before breaking the 1.88 support (pink --) on 25 sep. Olam continues to trade within the downtrend channel.

The last time Olam went below the 1.70 level was back on 20 mar 2008, where it reversed it trend upwards almost as dramatically as its fall then. However, this time, things are a little different.

If you look at the chart, Olam has formed multiple bottoms (4 bottoms) since the end of august, and each bottom was lower than the last.

For Olam to have any chance of a reversal, it would first have to break the 1.88 and 1.96 resistances.



For thursday :

Support @ 1.80 (pink ...), 1.69 (low pink), 1.62 (low red)
Resistance @ 1.836 (mid red), 1.86 (upp pink), 1.88 (pink --), 1.98 (blue ...)