Olam Muddy Waters Saga Chart Review as at 7th Dec 2012 1030am

Battle of the channels in progress. Price movement at channel cross road. Red channel vs blue channel.

Take note of lower support of the blue channel. Failure of this support will see more downward pressure along the red channel.  Breakdown of immediate support will probably test support zone 1 as indicated on the chart.

Conversely, if price can propel above the upper resistance of the red channel then the blue channel will become the dominant channel. Take note of potential support and resistance zones as shown on the chart.  Make use of support and resistance reversal trading strategies. Be nimble.