KUALA LUMPUR: CIMB Equities Research said Hock Seng Lee is gyrating in a bearish wedge pattern, suggesting that the RM1.64 high would likely be its near term peak.
'If our count is correct, selling pressure should gain strength gradually to challenge this uptrend. A fall below the wedge support at RM1.43 would accelerate the correction process. There is a minor support at RM1.49,' it said.
CIMB Research said'' bearish divergence on its MACD indicates that momentum has faded. RSI too has hooked down from the overbought territory.
The research house said given the rising downside risk, it would rather stay defensive at the moment. Hence, our strategy is to unload on strength, preferably near the RM1.64-RM1.70 resistances. Put a buy stop at RM1.72, just in case.
At RM1.58, it is trading at FY11P/E of 10.7 times and P/BV of 2.9 times.
'If our count is correct, selling pressure should gain strength gradually to challenge this uptrend. A fall below the wedge support at RM1.43 would accelerate the correction process. There is a minor support at RM1.49,' it said.
CIMB Research said'' bearish divergence on its MACD indicates that momentum has faded. RSI too has hooked down from the overbought territory.
The research house said given the rising downside risk, it would rather stay defensive at the moment. Hence, our strategy is to unload on strength, preferably near the RM1.64-RM1.70 resistances. Put a buy stop at RM1.72, just in case.
At RM1.58, it is trading at FY11P/E of 10.7 times and P/BV of 2.9 times.
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