June 8, 2012 / 8:16 AM / 7 years ago

MIDCAP-Singapore's Olam technicals suggest end of downtrend

* For a technical outlook, click: r.reuters.com/muq68s

Shares of commodity trader Olam International, which are down more than 25 percent over the past month, look set to reverse course, technical charts suggest.

The Trend Intensity (TI) is at 45 and declining. A reading above 40 is considered a trend mature zone.

A market is trending—bullishly or bearishly—when Trend Intensity is advancing. A trend is over when the signal declines.

The stock price has risen above the Parabolic SAR (Stop and Reverse) points this week, which is a positive sign.

Moving Average Convergence Divergence (MACD) is above the signal line, which is bullish.

The stock is up 0.3 percent over the past week, while the broader index is down 0.48 percent for the same period as of Thursday. It fell 2.4 percent on Friday.

CONTEXT:

Trend Intensity is a Thomson Reuters IFR Markets proprietary tool that identifies daily trends in financial markets by using geometrical averages of historical data. It is an intermediate-term statistical oscillator that indicates trend strength as well as potential reversal, formation or breakout points in a single indicator. (Reporting By Patturaja Murugaboopathy; Editing by Gopakumar Warrier)

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