KUALA LUMPUR: CIMB Equities Research has a Sell on Kian Joo Can Factory (KJCF) at RM2.38, at which it is trading at price-to-book value of 1.2 times.
It said on Thursday, April 21 that Kian Joo violated its support channel on Wednesday. If prices failed to bounce back above this trend line, there is a high possibility that the RM2.56 high would be its near term peak.
'The odds now favour the bears. Another black candle should push prices lower towards the 38.2% FR level at RM2.20. The 30-day SMA (now at RM2.10) is also magnet for prices,' it said.
CIMB Research said indicators are showing signs of exhaustion. MACD histogram bars are losing some pace here while RSI has also fallen below the oversold territory.
'Only a rise above RM2.56 would warrant us to review our call,' it said.
It said on Thursday, April 21 that Kian Joo violated its support channel on Wednesday. If prices failed to bounce back above this trend line, there is a high possibility that the RM2.56 high would be its near term peak.
'The odds now favour the bears. Another black candle should push prices lower towards the 38.2% FR level at RM2.20. The 30-day SMA (now at RM2.10) is also magnet for prices,' it said.
CIMB Research said indicators are showing signs of exhaustion. MACD histogram bars are losing some pace here while RSI has also fallen below the oversold territory.
'Only a rise above RM2.56 would warrant us to review our call,' it said.
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