Date: September 30, 2024
Broker: CGS International Securities

Company Overview

Wilmar International Ltd operates as a food processing company. The company is involved in a wide range of services including oil palm cultivation, edible oil refining, crushing, and grain processing. Wilmar also offers sugar, flour, and rice products, serving customers worldwide.

Technical Analysis

Wilmar’s stock has recently shown a strong bullish reversal, suggesting a potential upside. The daily timeframe chart indicates a reversal at the bottom of a corrective wave, hinting that the stock may continue moving upward.

Key Price Levels:

• Entry Prices: 3.36, 3.20, 3.00
• Support Levels:
  • Support 1: 3.20
  • Support 2: 2.94
• Stop Loss: 2.88
• Resistance Levels:
  • Resistance 1: 3.42
  • Resistance 2: 2.94
• Target Prices:
  • Target 1: 3.64
  • Target 2: 4.20
  • Target 3: 4.61
  • Target 4: 5.00

Technical Indicators

• Rate of Change: The short-term rate of change is rising sharply above the zero line, confirming the momentum.
• Directional Movement Index (DMI): Both ADX and DM+ are moving up together, indicating a resurgence in bullish strength.
• Stochastic Oscillator: The mid-term stochastic oscillator has confirmed an oversold crossover, suggesting that prices are likely to rise.
• MACD: The long-term MACD histogram is positive, supporting a bullish outlook.
• Volume: There has been a spike in volume above the 20-period average, adding further confirmation of buying interest.

Trend Outlook

Wilmar has been supported by an uptrend line for the past nine years, particularly in the weekly chart. This suggests that the corrective wave has ended, and the stock could experience further upward momentum.

Analyst Recommendation

Based on the current analysis, traders are advised to consider buying at HK$3.37 or accumulating on pullbacks at HK$3.20 or HK$3.00. A stop loss is recommended at 2.90, with potential for a short-term target of HK$3.64 and a long-term target of HK$5.00.

Traders are encouraged to shift their stop loss to break-even once the stock reaches the first target price of 3.64.

Analyst: Chua Wei Ren, CMT