The U.S. dollar is safer right now and will continue to strengthen. When your costs decline on a dollar basis, and your revenues increase on a dollar basis, your profits will be higher. The reverse is true when your costs increase on a dollar basis, and your revenues decrease on a dollar basis, your profits will be lower.
Wilmar gapped down with a hanging man @ S$3.21 (-0.13, -3.9%) with high volume done at 14.7m shares on 9 May 2014 at 10.20am.
Immediate support @ S$3.08, immediate resistance @ S$3.21.
The gap bet. S$3.255 to S$3.275 created on 20 Feb 2014 is convincingly covered by a sudden gap down with high volume and price hit low of S$3.13. The OBV and the MFI have a bearish divergence indicating persistent extremely strong selling pressure with high volume. The stochastic currently has no significant +ve impact on the downward swing of the share price although it is extremely oversold at below 20.
Should the long-term horizontal support convincingly breakdown at the pivotal point @ S$3.00 with extremely high volume, it's a bearish SELL signal indicating that strong supportive long-term funds are getting out and/or have initiated huge short positions on Wilmar.
Wilmar's "Stair-Step" Decline chart pattern actually represents plenty of stale bulls stuck bet. S$3 to S$7 (big and small institutional funds + retail investors). It's the same logic as SHELL and SembMar; Supply > Demand = Decrease in price. Long-term wise, a strong long-term downtrend stock with a "Stair-Step" Decline chart pattern may consolidate and trade sideway for ten (10) years or even longer.
"At the end of the day, the rise and fall of stock prices are more about demand and supply and much less about fundamentals." — oldman