KUALA LUMPUR: CIMB Equities Research has a Sell on Coastal Contracts at RM3.76, where it is trading at a price-to-book value of 2.3 times.
In its technical outlook on Wednesday, April 27, it said Coastal Contracts bounced off strongly from its RM3.23 low to hit a new 52-week high of RM3.82 on Monday.
'However, there is a bearish wedge pattern in the making, suggesting that this rebound rally is probably near its tail end,' it said.
CIMB Research said the MACD has flattened out while the bearish divergence in the RSI also shows that follow through momentum are weakening.
'Although we could not completely write off the possibility of further gains, sustainability is the key issue here.
'Traders should do well selling into strength, preferably near the RM3.82- RM3.90 resistances. Otherwise, wait for prices to fall below RM3.55 to confirm the sell signal,' it said.
In its technical outlook on Wednesday, April 27, it said Coastal Contracts bounced off strongly from its RM3.23 low to hit a new 52-week high of RM3.82 on Monday.
'However, there is a bearish wedge pattern in the making, suggesting that this rebound rally is probably near its tail end,' it said.
CIMB Research said the MACD has flattened out while the bearish divergence in the RSI also shows that follow through momentum are weakening.
'Although we could not completely write off the possibility of further gains, sustainability is the key issue here.
'Traders should do well selling into strength, preferably near the RM3.82- RM3.90 resistances. Otherwise, wait for prices to fall below RM3.55 to confirm the sell signal,' it said.
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