Jun 7-10, TA for Olam

TA for Olam,

Trend - Side Trending, 50D crossover 100D, MACD at 0 line
Momentum - Moderate (50%), downslope
Volume - Average 8 millions
Classical Resistance - 2.97
Classical Support - 2.73
Fundament Support - 2.60 or at least 2.60 (from Share Dilution news)
Classical Support 2 - 2.53

OBSERVATION,
Shares dilution is always a bad news. The support is at 2.73, if broken, the next fundamental support will be at 2.60. Anyway, I will watchout for STI for direction. If STI broken 3100, then we can prepare to see more blood shed on most stocks.

News update
0030 GMT [Dow Jones] Olam (O32.SG) may fall on resumption of trade after the agricultural commodities supplier announced a private placement of 94.4 million new shares at S$2.60 each to institutional and other investors and a one-for-22 preferential offering of 97.3 million new shares at S$2.56 each to entitled shareholders. OCBC says the offer prices represent discounts of 8.4% and 9.8%, respectively. Temasek Holdings has also agreed to subscribe for 94.4 million new shares at S$2.60 each, raising another S$245.5 million of net proceeds. "All in, Olam expects to raise as much as S$740 million, which it intends to use 50% on potential acquisitions in the future; 30% on capex; 20% on general corporate purposes. The overall exercise is likely to increase its existing share capital by 13.4%." The house is reviewing its Buy rating and a S$3.53 fair value due to the change in analyst. Olam's shares fell 5.0% Wednesday to Friday last week on speculation it was planning such a move. The stock closed off 2.4% at S$2.83 Friday. (matthew.allen@dowjones.com)