Monday, February 24, 2025

Wilmar - 24 Feb 2025

Wilmar International (SGX: F34)


1. Trend Analysis

  • Current Market Trend: The stock appears to be in a long-term downtrend, with lower highs and lower lows forming over time. However, in recent months, the price has entered a consolidation phase with signs of a potential base forming.
  • Higher Highs & Lows:
    • Lower highs: 3.72 → 3.60 → 3.55 → 3.47
    • Lower lows: 3.41 → 3.07 → 3.00 → 2.99
  • Trend Weakening Signs:
    • Overlapping bars in multiple zones indicate indecision.
    • Counter-trend rallies have lacked strong follow-through, suggesting sellers remain in control.

2. Key Price Action Signals

  • Strong Trend Bars & Follow-Through:
    • Large bearish trend bars appear around May and November, showing strong selling momentum.
    • Some strong bullish trend bars in recent months suggest buyers attempting to absorb selling pressure.
  • Reversal Signals:
    • Pin bar near 3.00 (August) suggests a strong rejection of lower prices.
    • Engulfing bar near 3.47 (October) showed a temporary bullish breakout but failed.
  • Inside Bars & Consolidation:
    • Several inside bars (e.g., near 3.19 - 3.20) indicate consolidation before a breakout.
  • Doji Bars & Market Sentiment:
    • Found around 3.12 and 3.15, suggesting indecision and potential trend change.

3. Support & Resistance Levels

  • Major Resistance Levels:
    • 3.55 (last swing high before strong drop).
    • 3.47 - 3.50 (previous supply zone).
  • Major Support Levels:
    • 3.00 - 3.07 (strong buying zone where price bounced multiple times).
    • 2.99 - 3.01 (psychological support, tested but held).
  • Reaction at Swing Points:
    • Price bounced from 3.00 twice, indicating strong demand.
    • Recent rejection near 3.47 confirms that sellers are defending that level.

4. Breakout & Pullback Analysis

  • Breakouts:
    • Recent breakout above 3.15-3.20 attempted to push higher but lacked strong follow-through.
    • Previous breakout attempt near 3.47 failed, signaling potential range-bound movement.
  • Pullbacks:
    • The downtrend shows multiple lower high pullbacks, confirming a controlled sell-off.
    • Recent pullback from 3.47 to 3.15 suggests a retest of support before the next move.

5. Market Context & Trading Bias

  • Current Phase:
    • The stock is transitioning from a downtrend to consolidation, with possible signs of accumulation.
  • Potential Trend Change Signals:
    • Repeated support at 3.00 suggests a possible bottom formation.
    • A higher low formation above 3.07 would confirm an early uptrend attempt.
  • Trader Psychology:
    • Fear: The previous sharp sell-offs indicate strong bearish sentiment.
    • Greed: Bulls are trying to step in near key support levels but lack conviction.
    • Indecision: Multiple doji bars and overlapping price action suggest hesitation in both directions.

Conclusion & Trading Outlook

  • If price holds above 3.15 and forms a higher low, it could attempt to break resistance at 3.47.
  • A strong break below 3.00 would signal a continuation of the downtrend toward new lows.
  • Wait for confirmation with strong volume before entering a trade.

Disclaimer:Please note that this analysis is for educational purposes only and should not be taken as investment advice. Trading involves significant risk, and you should consult with a financial advisor before making any decisions.

Dividend:   5.52%



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