Olam closed $1.45 on 24th Mar 09 after hitting an intra-day low of $1.11 on 4th Mar 09, a rebound of 30% from the low. Technical indicators already showing sign of pulling back. Stochastic signals are toppish in the overbought region and starting to cut down. RSI has cut down in the overbought region too. DI pair though still positively spaced but DI+ is cutting down. At current price level, Olam is also trading at its upper Bollinger Band limit already. Any pull back will test its first level of support at the 100d EMA of $1.33 and if that fails to hold, it will go down to test its 50d EMA and also its lower Bollinger Band limit at $1.27. Any potential upside would be capped at the 200d EMA level of $1.58. As broad market still did not breakout from the 200d EMA level, possibility of Olam able to break above $1.58 would be low. Therefore, the risk of entering a long position at present level is higher than the rewards.
