Wilmar international (SGX: F34) strong sell-off since early March 2020 has confirmed the bearish impulse of the 5 wave structure. Based on the technicals, we believe that the stock bullish move is coming to an end:

1. Rising wedge formation below 50% Fibonacci retracement level indicates a strong signal to sell.
2. Evening star formation below the 50% Fibonacci retracement level indicates the start of a bearish sell down. Looking closer, the cluster of candles with the evening star formation indicate a weakness when all three candles fail to break the recent top at 3.48.
3. Elliott wave (iv) complied with the theory’s rule, whereby price should display a reversal at the 50% retracement of wave (iii).
4. Prices have been trending below the 200 and 50 Moving averages. On top of that, the death cross of 50 moving average crossing below the 200 moving average is still valid.
5. RSI point to a bearish divergence.

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

CHART LEGENDS

Simple moving average

Red line = 200 SMA

Blue line = 50 SMA