22-Jan-12:
Olam has been on a downtrend since January 2011. Currently, testing the upper trend-line supported by 3 prior peaks. Price is however, supported by three previous bottoms at around 2.10.
In the past two trading days, price have seen weakness upon hitting 2.52 and in the last trading day, the price gaped up in opening trade and subsequently closed lower than the prior days close, indicating further weakness in the price.
Trading Plan
Olam has been on a downtrend since January 2011. Currently, testing the upper trend-line supported by 3 prior peaks. Price is however, supported by three previous bottoms at around 2.10.
In the past two trading days, price have seen weakness upon hitting 2.52 and in the last trading day, the price gaped up in opening trade and subsequently closed lower than the prior days close, indicating further weakness in the price.
Trading Plan
Short between 2.48 to 2.52.
Target price: 2.12
Stop-loss: Exit trade if price rises above 2.52 with good volume.
Cut loss at 2.54 during opening trade in view of the high volume exhibited. Bullish engulfing candle and break-out from the downtrend has turned view into bullish bias. Closed at 2.63, a whopping 6.5% rise from previous close.
Likely to test resistance at 2.80 level next.
25-Jan-12:
Review of tradeCut loss at 2.54 during opening trade in view of the high volume exhibited. Bullish engulfing candle and break-out from the downtrend has turned view into bullish bias. Closed at 2.63, a whopping 6.5% rise from previous close.
Likely to test resistance at 2.80 level next.
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