Olam Ltd – Daily timeframe (Update from 11 November 16)
Current Sentiment: Bearish
Support 1: 1.860 Resistance 1: 1.935
Support 2: 1.835 Resistance 2: 1.965
Price may have turned into a downtrend here after it broke below the 1.965 range low since 13/03/17. In addition, the 20 day moving average has also crossed below the 60 day moving average on 07/03/17 further validates the shift in sentiment to the downside.
Since then, price has continued to break new lows with price breaking below the 1.935 support area showing an increase in weakness.
The recent correction was short-lived when price got heavily rejected off the 1.935 support turned resistance area on 17/03/17 with extreme volume. Moreover, the bearish follow through on 20/03/17 formed a Bearish Engulfing Bar that broke price below the pullback line suggests further downside next.
Expect price to head lower next to test the 1.860 support area followed by 1.835.
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