Olam

Olam: is +3% at $2.39.
Announced a couple of plant inaugurations on Friday.
i) President Ouattara inaugurated Olam’s two new additions to its supply chains in the Ivory Coast – an advanced mechanised cashew processing plant in Bouake and the first dairy processing plant of its kind in West Africa in Abidjan. This is part of its commitment to invest $200m in various capital projects over the next 5 yrs in Ivory Coast. Strange that this co announcement is available on Bloomberg but not SGX. See attachment on left panel.
ii) Olam also said it invested US$55m in a wheat mill in the Ghanaian port city of Tema.
Technically, if the share price closes above yday’s high, a bullish engulfing candle pattern would have formed. This, the oversold Stochastics, and the bounce of the $2.30 (mild) support level, suggest that the stock could see some positive near term price movement. If resistance at $2.50 is breached, the stock could move quickly to test $2.60 next. If the near term momentum loses strength, we see firmer support near the $2.20 levels.