Olam bounced off strongly from the 1.40 round psychological level during last year mid-December period.
Today, Olam managed to close above its 50MA and 38.2% Fibonacci retracement level.
The 20MA seems to forming a rounding bottom indicating short-term wise it is remain bullish.
However, I do not advise buying it now in overbought market especially when the price is far away from the 20MA and the STI is at strong resistance area.
The support level to watch out for will be 1.575, which was the previous breakout level and it is also likely that the 20MA will be rising up to reach this level as well.
Nam Cheong
From the charts, we can see that Nam Cheong is near its all time high of 0.275 with a resistance turned support of 0.23.
It has also a rising support trend line which potential can be forming an ascending triangle.
The 20, 50, 100, 200 MA are all pointing up, indicating mid-term to long-term bullishness.
However, I do not advise buying it now as it is near a strong resistance area. This counter does not really track the movements in the STI and is highly subjected to speculation due to its cheap pricing. Therefore, a breakout of 0.275 strategy can be used here. Do note that if 0.23 support fails, it is likely to retrace further.
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