Thursday, August 22, 2013

***** Trading Sell: Olam. Share price 1.535. (Head and shoulder formation - more downside possible on weak market) - (CFD SELL only)

Olam has broken the immediate 1.57 and 1.55 support level today on much stronger volume. 1.57 support was holding well in July from where it bounced up again. The break down of 1.55 has further confirmed the short term weakness, this support level has been holding since Jan this year. As long as 1.55 remains as new resistance level, we are bearish with a downside to 1.50 then 1.485.. Note that low in Dec last year was 1.365 so that maybe the level tested again if market continues to weaken. A slight head and shoulder formation with the head formed in May 2013, and horizontal support broken at 1.57.
Buy Stop at 1.565

No comments:

Post a Comment