Wilmar (SGX: F34) entered into a bearish correction after prices broke the lower bound of the rising wedge. Nevertheless, the midterm sentiment is still on a range with a bullish tilt based on the technicals:

1. Wilmar had rejected the demand area highlighted on last Friday close.
2. The demand area strongly confluent with the 61.8% Fibonacci retracement of 3.54-4.38.
3. Price is still trending strongly above the 200 moving average.
4. Stochastic indicate oversold cross, as such the stock’s bearish sentiment is believed to be exhausted.
5. However, price action suggest that the stock may be in a ranging mode as the immediate supply area highlighted at 4.20 region act as a strong resistance.

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

CHART LEGENDS

Red dotted line = 200 Periods Moving Average