Wilmar sell down after wave 4The strong sell down March 2020 has confirmed the bearish impulse of the 5 wave structure. Based on the Technical, we believe that the stock bullish correction is coming to an end:
1. Rising wedge formation below 50% Fibonacci retracement level indicate a strong signal to sell.
2. Evening star formation below the 50% Fibonacci retracement level indicate the start of a bearish sell down. Looking closer, the cluster of candles with the evening star formation indicate a weakness when all three candles fails to break the recent top at 3.48.
3. Elliott wave (iv) complied with the theory’s rule, whereby price should display a reversal at the 50% retracement of wave (iii).
4. Prices has been trending below the 200 and 50 Moving averages. On top of that, the 50 moving average crosses below the 200 moving average has formed a death cross and it is still valid.
5. RSI indicate a bearish divergence.
