KUALA LUMPUR: CIMB Equities Research said based on the daily chart, it seems that strong resistance lies ahead for APM Automotive.
It said on Wednesday, June 30 the fact that prices remain below its 52-week high of RM4.71 indicates that the bulls are taking a more cautious stance. On Tuesday, the stock almost violated its 30-day SMA.
'Technical indicators are showing signs of exhaustion. MACD has flattened out while its RSI has hooked downward. This also suggests that upside is likely cap for now.
'Unload on strength is a good option here, especially near the RM4.40-RM4.55 resistances. Meanwhile, a slip below RM4.08 (30-day SMA) would drag prices towards RM3.77 and RM3.61 next,' it said.
APM closed at RM4.26 on Tuesday and it is trading at FY11P/E: 7.2x, P/BV: 1.3x.
It said on Wednesday, June 30 the fact that prices remain below its 52-week high of RM4.71 indicates that the bulls are taking a more cautious stance. On Tuesday, the stock almost violated its 30-day SMA.
'Technical indicators are showing signs of exhaustion. MACD has flattened out while its RSI has hooked downward. This also suggests that upside is likely cap for now.
'Unload on strength is a good option here, especially near the RM4.40-RM4.55 resistances. Meanwhile, a slip below RM4.08 (30-day SMA) would drag prices towards RM3.77 and RM3.61 next,' it said.
APM closed at RM4.26 on Tuesday and it is trading at FY11P/E: 7.2x, P/BV: 1.3x.
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