Support 1: 1.73 Resistance 1: 2.00
Support 1: 1.57 Resistance 2: 2.09
Olam International has been going on strong since the rebound from 1.75 in June 2019. However, the stock has arrived near the psychological resistance of 2.00 as of Monday, 24th June 2019. Entering into a long position now is considered a risky move as price has already moved way above market expectations.
Base on the technical factors presented, the stock will most likely head for a correction. The clue is in the potential stochastic oscillator’s overbought crosses. Should the cross occurs, the stock will very likely fall into a correction, and the best price to long is 1.81 as there is a strong area of demand over at the zone.
*Should the stock breaks above the resistance price level of 2.00 and close 2 strong bullish candlesticks above; there is a possibility it might extend to 2.10.
Red line = 200 periods moving average
Blue line = 50 periods moving average
Green line = 22 periods moving average
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