The Edge Hot Stock 6 Sept 2008

Commodities is presumed to be overvalued due to speculation and now their turn for commodity crunch.

Wilmar International – Further downside likely
Golden Agri – Break support
Noble Group – Likely to make new low
Indofood Agri- Oversold but drifting lower
Olam International – Poised for breakdown
Strait Asia Resources- Break down


Wilmar
-not done with its decline. broke below support at $3.50 and setting an initaial target of $3 and an eventual target of $1.50 (Scary?!) This may now look impossible, but in bear markets, nothing is impossible (wah lao eh!). Volume expanded substantially on the breakdown, ADX is rising, DI are negative, MA and momentum are falling.

The longer term chart shows prices breaking down from a double top formation. If so, then palm oil prices hv probably peaked and embarked on the bear makert as well. (hv to run road liao)

Noble
-broke below support $1.79, initial target $1.5 and eventual target $1. 50 days MA set to meet dead cross with 200 days MA.

Golden Agri
-broke below support at 59 cents. Earlier break below 80 cents indicated target of 40 cents which yet to be met. (Long way to go??)

Indofood
- was above $2.5 in June and more then halved in past 2 mths. Overstretched on the downside that it should attempt a rebound (THIS IS THE ONLY POSITIVE STATEMENT OVER THE WHOLE COMMENT!!! WHAT A PITTY).

Olam
- is set to break support at $1.80 shortly. Indicate minimum measuring objective of $1.50 and may well exceed this level (Really jialat). It is a time to brace yourselves for a fall.

Strait Asia
- Broke below a series of support last week. An immediate target $1.75. Any rebound will finds resistance at $2.20 but may go lower first before rebounding.