Technical Pulse: Olam Ltd March 21, 2017 57

Olam Ltd  – Daily timeframe (Update from 11 November 16)

2

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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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd

Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.

He is also a regular columnist on The Business Times - every Monday ChartPoint column.

He graduated with a Bachelor of Science in Banking and Finance from University of London.

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