On Wednesday, Wilmar re-tested the gap support at $6.19 and closed at $6.31 with LOW volume of 9.45 million shares traded.
A white candle sticks with long upper shadow affirms the strength of the new resistance turned support at $6.19.
Both RSI & MACD are bullish as MACD lines about to perform a “golden cross”.
Important Resistance of Wilmar: $6.47
Immediate Support of Wilmar: $6.19
Currently prices are supported at technical / 20/50/100 days MA at $6.19
As shown from the charts, Wilmar managed to trend upwards inside the rising channel since the gap down May 2010.
We would expect the support at $6.19 to be very strong since the breakout just occurred on 31/Aug with high volume of 55.7 million shares.
Thus we would encourage buying near the support level of $6.19 if interested in the palm oil business.
On Wednesday, SPH breakout of $4.08 major resistance and closed at $4.13 with HIGH volume of 5.48 million shares traded.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Both RSI & MACD are bullish as RSI surge upwards sharply.
Important Resistance of SPH: $4.20
Immediate Support of SPH: $4.08
Currently prices are well above 20/50/100/200 days MA
For the past 2 session, SPH has been trading at very high volume with investors buying up the stock to push the prices higher.
We would not suggest buy this stock now since it is already near to major resistance and RSI approaching “overbought region”.
In fact, we expect the 2 years high resistance at $4.20 to be very strong and thus the risk/reward ratio will be low.
Be The First To Comment