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.
Picture source: http://sgx.i3investor.com/blogs/sgxstockwarrant/28832.jsp
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
