Technical Analysis
Wilmar, SIA

Wilmar

The falling knife

• Wilmar fell below the 200-day moving average support 2 trading sessions ago, indicating a bearish sentiment has surfaced.
  
  
• The bearish candlestick formations over the last 5-7 trading days have been accompanied by high volume, suggesting that the downside momentum is still strong.
  
  
• We expect Wilmar to level out around the S$3.60 – 3.80 support – this was a key reversal level over the last 12 months. Also the medium-term uptrend line, which connects the lower highs between Mar 07 and Mar 08, is in proximity to this support level. Hence we view the support around this region to be fairly strong and should provide a near-term bottom.
  
  
• Any attempt to rebound at this stage would be met with stiff resistance at S$4.60, which is in proximity to the 100- and 200-day moving averages. Hence we view the near-term upside as limited.
  
  
  

SIA

Rising on weak volume

• SIA has rebounded off from the support levels around S$13.90 – 14.30.
  
  
• But the price rise has been on the back of weak volume over the last 2 trading sessions, suggesting the uptrend is losing momentum.
  
  
• Coupled with the overbought position of the stochastic indicator, the chart suggests that the price could slip in the near-term.
  
  
• Any further advancement would face resistance at S$16.00. This is also within the price consolidation area.
  
  
• Immediate support is provided by the 50- and 100-day moving averages, which are around the S$15.20 – 15.30 range. Should SIA break below these levels, we expect the price to head back to its support around S$13.90 – 14.30. The long-term uptrend line is also in proximity to this support level.
  
  

SHAREHOLDING DECLARATION:
The analyst/analysts who wrote this report holds NIL shares in the above security.

RATINGS AND RECOMMENDATIONS:
OCBC Investment Research’s (OIR) technical comments and recommendations are short-term and trading oriented. However, OIR’s fundamental views and ratings (Buy, Hold, Sell) are medium-term calls within a 12-month investment horizon. OCBC Investment Research’s (OIR) Buy = More than 10% upside from the current price; Hold = Trade within +/-10% from the current price; Sell = More than 10% downside from the current price.

DISCLAIMER
This report is solely for information and general circulation only and may not be published, circulated, reproduced or distributed in whole or in part to any other person without our written consent. This report should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities mentioned herein. Whilst we have taken all reasonable care to ensure that the information contained in this publication is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. Any opinion or estimate contained in this report is subject to change without notice. We have not given any consideration to and we have not made any investigation
of the investment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the recipient or any class of persons acting on such information or opinion or estimate. OCBC Investment Research Pte Ltd, OCBC Securities Pte Ltd and their respective related and affiliated corporations together with their respective directors and officers may have or take positions in the securities mentioned in this report and may also perform or seek to perform broking and other investment or securitiesrelated services for the corporations whose securities are mentioned in this report as well as other parties generally.

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