Wednesday, July 20, 2016

Wilmar - Profit Guidance, Expects $230M Loss

Wilmar just had a super gap down today and I believe the news got to do with their profit guidance on a net loss of $230M.

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However, based on the chart, the stock has already showed signs of weakness where there was profit taking following by a very weak lackluster of buying which contributed to the gap down today. For the past 2 weeks, a short sell was initiated on this counter and the reward is very fulfilling. Based on what I taught in my program, the stock underwent a very long weak buying without any signs of significant buyers and hence it was weak.

Today because it gap down fiercely and went into the oversold mode, a short covering was done at the low of 2.99 before the stock now rebounds to a high of  3.14. A gap down today I believe, many covered their shorts or the stock would not have rebounded.

Ronald K - Market Psychologist - A Stock Market Opportunist