Wilmar
Wilmar has become a hot stock again recently!China has removed price limits on edible oils according to an unidentified official from the National Development and Reform Commission's price department. If this news is true, it is viewed as a positive to Wilmar as it allows Wilmar to raise its cooking oil prices and improves profit margins for this division.
Technically, this counter has begun to trend again after making a double bottom on Mar 15 and May 6. There has been many buy calls the past few days, which are fine. However, for those who have not bought yet. You may wait for pull back and buy on dip.
There are two signs suggesting that there might be a pull back in the near future :
1. A shooting star candlestick with extremely long tail - a sign of rejection
2. A bearish divergence between the underlying prices and RSI
Recent prices have traveled too far and too fast away from the 20/40 MA. It may pull back to hug the two MAs again in the near future.
Technically, this counter has begun to trend again after making a double bottom on Mar 15 and May 6. There has been many buy calls the past few days, which are fine. However, for those who have not bought yet. You may wait for pull back and buy on dip.
There are two signs suggesting that there might be a pull back in the near future :
1. A shooting star candlestick with extremely long tail - a sign of rejection
2. A bearish divergence between the underlying prices and RSI
Recent prices have traveled too far and too fast away from the 20/40 MA. It may pull back to hug the two MAs again in the near future.
Labels: Stock Pick
posted by Market Wizards @ July 19, 2011
Comments: 0
