Wilmar is forming a Symmetrical Triangle and looks like going to breakout soon. If Wilmar breakout and move up, target price is $7.40. If Wilmar breakout and move down, the stock may move to $5.30. OCBC Investment Research has a BUY rating for Wilmar with a fair price of $8.23 (base on FY10F 20x EPS)
Wilmar has been on a up trend since Mar 2009 without a healthy correction to climb further. The recent chart shows that Wilmar is moving sideway into consolidation phase but also at 20D MA support line. 20D MA just crossed down 50D MA recently and this is a first sign that the correction may begin. If Wilmar stock price cannot hold above the current 20D MA support of $6.35, it has the potential to retrace back to $4.99.
