Follow up previous post on Wilmar: Don’ Catch the Falling Knife!
Wilmar’s stock chart continues the downtrend after failing to break the 20D MA resistance for the third time. Next support to watch is 61.8% Fibonacci Retracement Level at about $5.115.
Wilmar has broken $6.00 (78.6% Fibonacci Support) with increase in trading volume. Wilmar is currently trading below 20D, 50D and 200D MA and this is a bearish trend signal. As rule of thumb, never put your money into a stock for long term investment when the stock chart is on down trend. Next support to watch is the 61.8% Fibonacci Retracement Level at about $5.115.
Wilmar is testing an important resistance for the 3rd time at about $6.45. Do take note that this level proves to a strong and tough resistance to be broken for the past few occasions. Coincidently this level is also very near to the current 200D MA, and also the resistance of a potential Ascending Triangle pattern. If this $6.45 is broken, the next immediate resistance is at $7.00. Else, Wilmar will reverse the trend with the immediate support at about $6.044 (78.6% Fibonacci Retracement Level).
