Wilmar International Ltd (SGX: F34) robust rebound since mid-March saw price breaking above S$3.80, which invalidated the downtrend beginning in January 2020. Based on the technicals, we are likely to see prices breaking the immediate resistance zone at S$4.22-S$4.29.

1. Price upside confirmed after the stock made higher highs and higher lows, especially after a strong break above S$4.00 on 25 June.
2. On Monday (6 July), price saw strong bullish momentum after breaking above the pennant pattern, indicating a renewed bullish trend.
3. In addition, the pennant pattern had been trending above the support level at S$4.10, further strengthening the bullish case.
4. The 50-day moving average has crossed above the 200-day moving average, forming a Golden cross and indicating that the bullish trend is likely to continue.
5. Target price is at S$4.81 at the 127.2% extension level of the swing trough to peak from S$2.80-S$4.38.

*Timeline of the trade should be between 1-3 weeks from the report issue date.

*Should price exhibit a reversal signal at the immediate resistance zone or the resistance level at S$4.38, the next rebound should happen at the S$3.38-S$3.39 price range.

CHART LEGEND

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average