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Wilmar, China Minzhong and Sound Global.

Tuesday, January 8, 2013

Wilmar's share price could not overcome the resistance provided by the descending 200d MA. Look out for a retest of the support which approximates the 100d MA at $3.20. I would buy more if that should be tested.

China Minzhong's share price has established 86.5c as the resistance to watch. There is still a chance of a pull back to support provided by the rising 100d MA. I have sold some at resistance as a hedge and if support should be tested, I would probably buy more. Breaking resistance at 86.5c could see share price heading towards $1.00.

Two dojis in a row suggest indecision on the part of Mr. Market with Sound Global although a higher high on the MACD suggests a strong positive momentum and we could see price pushing higher. Expecting a band of resistance from 68c to 70c while expecting a band of support from 59c to 61.5c.

Related posts:
1. Wilmar: Testing resistance with strong momentum.
2. China Minzhong: What are we to do?
3. Sound Global: Another resistance level broken.


Ling Kulanko said...

Hi AK,
(and all readers) please pardon my limited knowledge, I'm abit confused about Wilmar.. just read in Strait Times an article on all the fundamental reasons that Wilmar is not a good buy, but reading your information here on Wilmar mostly technical side that you are going to be vested more... are you doing short term trading on Wilmar?
thank you,

Don_Jerome said...

Sometimes, I'm amazed at how accurate Ta is...

AK71 said...

Hi Ling,

Wilmar is having difficulties with its crushing business in China. However, off the top of my head, that is probably a third of its business. Overall, Wilmar is still a profitable company.

Could things get any worse? It could. However, coming from a lower base, could the chances of things getting better be higher than for them to get worse?

This blog post is all about technicals and the nice thing about technical analysis is that we have a window into Mr. Market's psychology. Price is governed by sentiments more than fundamentals. So, yes, for people who want to do short term trading, technicals are very useful.

However, for people who believe in the longer term fundamentals of Wilmar, they can use technical analysis to decide on entry points as well. :)

AK71 said...

Hi Jeremy,

That makes the two of us. :)

Jay said...

Thanks for the chart and comments on Wilmar. I have them on my watchlist (as the other NOW's), but wasnt bold enough at 3.11 to get in... oh well, now I wait and hope they retreat a bit before eventually breaking out. Your chart provides good help to understand likely ~3.20 support, so here goes my threshold price..

AK71 said...

Hi Jay,

TA shows where are the likely support and resistance levels. They might not be tested or they might not hold but it is nice to have estimates. ;)

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