Key support violated. Olam International is likely to see further correction after initiating a strong bearish break below its $1.60 key horizontal support via a gap-down on heavy trading volume yesterday.
Indicator is bearish. The MACD has just plunged below the centerline, suggesting that the downside momentum is accelerating.
Next key support at $1.40. The counter could possibly slip further towards the next key base at $1.40 (key trough) in the weeks ahead.
Immediate resistance at $1.60. Meanwhile, $1.60 is now the newly established support-turned-resistance.
Note: We currently have a fundamental HOLD rating on Olam International with $1.73 fair value.
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