Any retreat should meet with support at 3,153. The pause may be temporary as quarterly momentum is strong having surged above its equilibrium line. In addition, the 50- and 100-day moving averages are set for a positive cross later this month.
All in, the market is set for a firmer tone for the rest of the month.
Olam breaks out of resistance
Prices broke above resistance at $1.77 on Jan 18 and has held above its 50-day moving average at $1.70 on Jan 7. The breakout was accompanied by a significant expansion in volume although overall, absolute volume figures are low. Quarterly momentum looks set to strengthen, and could move above its own equilibrium line. Resistance/upside is at $2.00.
