Wilmar International Limited (SGX: F34) Potential breakdown of a consolidaton triangle to retest the support zones at S$3.85-3.95 and S$3.63-3.75:   

1. The price failed to sustain above the $4.17 horizontal resistance level it broke out of and has pulled back after reaching a 61.8% Fibonacci retracement level at S$4.23, using the swing high of $4.71 and swing low of S$3.46 as points of reference which provides a bearish signal.
2. The Moving Average Convergence Divergence (MACD) technical indicator is currently displaying weak momentum as it made a lower high while price made a higher high recently, which is a bearish divergence signal.
3. The price could retest support zone 1 at S$3.85-3.95 first, where the $3.85 price level is confluent with a 50% Fibonacci retracement level before heading to support zone 2 at $3.63-3.75, where the S$3.75 price level is confluent with a 61.8% Fibonacci retracement level. The Fibonacci retracement levels are calculated using the swing high of $4.24 and swing low of S3.46 as points of reference.

*Expected timeline of the trade is 13 weeks from the date of report issuance

CHART LEGEND

Red box = Resistance zone

Green box = Support zone