Update on Olam 29 March 2008

Olam is a stock in focus. Recent downgrade by Merril Lynch. Friday halted, followed by announcement of rights issue.

Where will this go? Anybody's guess man. I kinda think Olam will drop next week. Moving averages trending down. Will they be resistance levels? HCR noted at 2.50-2.70

Olam

Rounding top pattern? Resistance at necktie at 3.13.

Olam

Olam had a steep drop today. It had already broken out of the upward trendline and went past the first HCR support and is closing in on the 2nd HCR support level.

How low will it go?

I noticed that it has already shot past the 62% fibonacci retracement level from the start of the upmove to the highest peak signalling that this is probably a reversal.

Let's see if there is a pullback and whether that represents another shorting chance.