**************Olam: Still going stong. Price 1.96... may test 2.00 soon....

Olam likely to test the 2.00 psychological level after breaking the recent high at 1.95. Top 30 volume see currently on this breakout. As long as 1.95 is not broken down, we favor an up move with 2.00 and then 2.08 as next targets.

Stop loss at 1.935

 

5^th March 2014

Olam: Share price surged 6% following Noble's discussions in relation to a potential JV around its agri business.
Latest posting on 26 Feb, Barclays reiterates Overweight , TP $2.00 from $1.80, notes earnings tailwinds in both the short and long term. Says the turnaround story for Olam seems to be coming together with some idiosyncratic upside from weather patterns.
The dry weather in California and Brazil has led to an increase in prices for almonds, coffee and tomatoes, and will provide tailwinds to Olam’s earnings, while commissioning of agri terminal in Australia should also contribute to earnings.
The house revises FY14-16E earnings to reflect a higher exit rate for 1H14 earnings, but the events of the past two months could lead to c15-20% upside from these levels as well.

 

******* Trading SELL: Olam. Share price 1.485. ( Broke Critical 1.50) ( CFD SELL only)

Following up from previous SELL call made last Thursday 22 Aug 2013. Olam has indeed traded lower and consolidated above the 1.50 for the past 3 days. Today we have seen it broke below the 1.50 critical support level. More downside can be possible to 1.40 then 1.36 level. Resistance would now be 1.50 where there are huge sellers stacked now. Buyers got thrown off at 1.50 just now rapidly leading to sell down. Bearish as long as still below the 1.50 immediate resistance. Head and shoulder pattern bearish pattern mentioned in previous post.

Buy stop at 1.515

 

***** 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

 

*** Potential Trade Setup: Olam. Share price 1.81. (Broken up 200 DAY MA)

Olam has broken up above the 1.80 level today. A key thing to note is that it has Broken above the 200 DAY MA - 1.78 level (Dotted blue line) which can signify a longer term recovery is in place. You can see that it has been trading below the dotted blue line mostly ever since Mar 2011. More upside in the short term if it stays above the 1.80 level.  As long as 1.80 holds as the new support, Olam can find a new consolidation above it. Top 30 Volume seen currently.

Stop loss 1.77.

 

****** Short Term Trading Buy : Olam. Share price 1.735

Critical resistance at 1.72 has been tested and broken today. Has traded below this 1.72 resistance level since November last year and has since formed a Ascending triangle pattern formation which is one of the most Bullish signals. Resistance will now turn to support at 1.72. As long as 1.72 remains as the new support, potential upside to target 1.80 and 1.84 is possible. We are bullish above 1.72. A break above 1.80 can see it test 1.84 quickly.

Stop loss at 1.695

 

 

OLAM CHART - Broke above the 1.70 psychological level, now at 1.73.... target to 1.90 short term. Company announces share buyback programme.

Put a stop at 1.69.
 Has been consolidating below 1.70 for about 2 weeks.

OLAM CHART - Break below yesterday low of 1.68... currently at 1.66.... seems like weakness and sell down still in placed...

Support at 1.60 possibly....

OLAM CHART - Support at 2.20 broken, currently at 2.18.. downside to 2.10 likely on market weakness.

OLAM CHART - Convincingly cleared 2.30 level.... now at 2.32... possible to head up to test 2.42 then 2.50 level....

Volume strong while staging a rebound... must stay above 2.30...

OLAM CHART - 2.30 cleared.... Now at 2.31.... possible upside to 2.40 to 2.42 short term.... put a stop at 1.285....

OLAM CHART - Support above 2.20 currently.... good to accumulate near suppoort level.... Almost 2 months above this level.... Target price to about 2.40 in short term....

Put a stop at 2.17.

OLAM CHART - Broke above consolidation phase at 2.35, now at 2.38....short term upside possible ....

From the chart, you can see that the recent high is above 2.60.... put a stop at 2.32

OLAM CHART - Bouncing off support at 2.30 again.... Supported well above this level for about a month.... Possible upside to 2.50 then 2.60 critically...

Would be good to get some around bottom end of trading range for potential rebound.... put a stop at 2.27 nevertheless....

OLAM CHART - Support at 2.30.... possible to trade this range from 2.30 to 2.50...... Get some below 2.35.... put a stop at 2.28

OLAM CHART - Pulling away from 2.50 support level..... Target to 2.80 in the short term.... Now at 2.57....

Broke above yesterday high of 2.54.... More upside likely !

OLAM CHART - HAS CROSSED THE 2.99 RESISTANCE LEVEL... next target is 3.14 !!!!

Traders can enter some on this break !!

OLAM CHART - has broken away from the 2.72 resistance, now at 2.74, if stay above likely to head higher and close the gap...

Look at how sharply it has come down the previous week... Rebounding back to 2.88 level possible is stay above 2.72....

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OLAM CHART - Hammer candlestick pattern spotted yesterday, broke away from yesterday high of 2.61...

Possible to rebound back to above 2.80 level on clarification made by Company. Strong volume seen today on rebound....

 Olam (O32.SG) rises 3.1% to S$2.64, recovering some of it's 13% fall this week, with analysts largely debunking concerns sparked by a recent CLSA report talking about Olam's dependency on Nigeria export incentives and perceived accounting discrepancies. RBS says the concerns are "misplaced," and reiterates its Buy call with S$4.05 target. IIFL says "this may well be Nigerian scam at its finest: a disgruntled rival trader spun a tale; a brokerage took the bait and speculated that Olam's business is built on Nigerian export incentives." It adds, Olam's operations are robust and its gearing is within the comfort zone; "we recommend Buy, especially now that it is trading at a cheap 17X forward P/E." Morgan Stanley, which has an Overweight rating says "the issue of export incentives is not significant...and we are not concerned about the impact of a change in incentive structures on Olam's profitability." Credit Suisse, which has a Outperform call and S$4.20 target, says the sharp pullback means Olam shares are now at "an attractive entry point."

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OLAM CHART - support at 3.04....

For the aggressive, can accumulate at the Dec low of 3.04.... In Dec 2010, it touched 3.04 before lifting off to above 3.25. Resistance for Olam is currently at 3.11 to see it go up further. Stop loss at 2.98

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