A double bottom has formed on Wilmar’s daily chart. Volume lowered when price tested the bottom a second time at $4.86, suggesting a lack of interest in the counter by market participants.
However, a rising MACD which completed a bullish crossover with the signal line suggests improving momentum although it is still in negative territory. What we could have is a rebound, if not a reversal.
The resistance provided by the 20dMA kept the share price down yesterday but today, the counter traded above the 20dMA the entire session.
If price should retreat and test the 20dMA at $4.95 for support, it could be an opportune time to initiate a long exposure. If the 20dMA holds up well as support, a test and an eventual break of the top of the double bottom formation at $5.08 could happen in time.
The 200dMA, a long term MA, should provide some resistance at …