Olam: Potential Reversal !
A Shooting Star candlestick was formed at the 200D MA resistance and 61.8% Fibonacci Resistance. This is a potential reversal pattern. Next support at $2.785 which is the 50% Fibonacci Support.
Olam: Down Trend Continues
An Evening Star Candlestick pattern was observed at the 50% Fibonacci Resistance a few days ago. As expected, Olam reversed to down trend after the rebound. Current support is $2.645 followed by $2.471.
Note: Olam is currently trading below 20D, 50D and 200D MA. The 20D MA has also crossed down 200D MA which is a bearish chart pattern.
Olam: What is the Direction?
Olam has broken down from the 200D MA support and will start the bearish trend. Although Olam bounced back from the 38.2% Fibonacci Support at about $2.64, it is likely the upside potential is capped at $2.78 which is the 50% Fibonacci Retracement Level. If you look closely on this Olam chart, the chart pattern support & resistance fit very nicely on the various Fibonacci Retracement Level (50%, 38.2%, 23.6%). Thus, the next immediate support are $2.64 and $2.468 accordingly.
Previous Analysis on Olam.