Olam has finally broken down from the $3.05 support and currently testing the 200D MA support (which is close to 61.8% FR Level). If Olam is unable to hold above this 200D support, Olam will start a down trend. At the moment, upside potential may be limited as $3.05 is the immediate resistance.
Olam has been forming a multiple tops since last breakout. The current level is also close to 3 years high. Recently Olam has broken the 50D MA support and unable to break above the 50D MA. This 50D MA has turned support into resistance. It is a time to take profit if you have made handsome profit since the breakout. The next immediate support is $3.05 (Double Tops Resistance in 2008) followed by $2.845 (78.6% Fibonacci Retracement Level).
Olam breaks a critical resistance at $2.82 yesterday. The next resistance is $3.05 (extended resistance line back in Mar-May, 2008) followed by $3.224 (123.6% Fibonacci Retracement Level). A safer entry point to consider is when Olam retraces back to$2.82 to test this is a good support to confirm the breakout is successful.
