Today something significant happened to Wilmar. Since the last post i blogged about Wilmar, Wilmar did indeed have a mild short rally. I saw demand came and that was why i was confident it will rally. Nevertheless, the last 2 days' action on Wilmar was pretty suspicious. The market rallied strong yesterday and Wilmar did not even rally much and that was a clue of weakness, where supply was overcoming demand.
Wilmar is now on its way to lower price and there will come a time again when demand will overcome supply. Wilmar definitely caught me by surprise because all along demand was in and i thought accumulation was taking place. For now, we know that the circled area is an area of distribution and it takes time for all the selling to finish before the buying will renew. We shall continue to watch and be cognizant of any impending changes that might developed.
Ronald K
