Recent selling pressure on Wilmar, could be due to concerns of potentially weak 2H10 results as Chinese govtn capped cooking oil prices for the Mid-Autumn and National day holidays despite higher feedstock prices. Technically, we also note that the stock has broken off from its Trend Channel at $6.25, which was started in May……
However Stochastics indicators are beginning to look oversold and UOBKH issued a report on Fri, recommending investors accumulate at prices below $6.00 as volume growth may continue to surprise on the upside for Wilmar’s oilseed and consumer pack segments, which could offset impact of potentially lower margins in 2H10.
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