Olam International: 4 December 2012, Tuesday, 11.17am Singapore Time
A follow-up from previous technical analyses on Olam where the price has indeed dived since warning in August 2012:
As attached above, based on more advanced technical analysis, Olam will do a dead-cat-bounce escape wave within the RED ZONE. With or without the well-known Muddy Waters Report, its long term sell was inevitable based on long term T.A as highlighted in August 2012 (Olam was $1.90-$2.00 back then, before the Muddy Waters Hedge Fund released its Reports).
The first layer of selling pressure suppressing Olam is posed by the RED ZONE as above. This is the real battle/fighting zone, and because of the entire price structure as highlighted in August 2012: http://donovan-ang.blogspot.sg/search/label/Olam, the RED ZONE will continue to be great selling pressures to get out of Olam.
$1.715-$1.77 poses the first powerful resistance inside the RED Killing Zone suppressing Olam until next year 2013. RED ZONE (December 2012-January 2012) is expected to be tested SUCCESSFULLY as resistance.
Should Olam escape into the ORANGE ZONE, there will still be tremendous suppressive layer at $1.83-$1.89 where the most optimistic of long term holders will want to get out based on T.A.
Technicals continue to be damaged and out-of-favour (And Technicals react 6-9 months ahead of Fundamentals, suggesting Olam fundamentals are not good). Getting out is the safest route as down-move, as had been anticipated, has been impulsive and rebounds are merely corrective (to get out) in structure. Since 2011-2012, Market has been judging Olam as a sell based on price structures (http://donovan-ang.blogspot.sg/search/label/Olam). Respect the market.
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