KUALA LUMPUR: Shares of COASTAL CONTRACTS BHD [] extended their losses in afternoon trade, down as much as 17 sen to an intra-day low of RM3.59 on Wednesday, April 27 while CIMB Equities Research was cautious about the share price.
At 3.57pm, it was down 12 sen to RM3.64. There were 749,200 shares done at prices ranging from RM3.59 to RM3.76.
In its technical outlook, CIMB Research 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.
Coastal had recently announced its units had collectively secured contracts for the sale of 11 tugboats to a company based in Central America for an aggregate value of approximately RM61 million.
Including the new contracts, Coastal Group to date has about RM665 million worth of vessel sales orders awaiting delivery to customers up to 2012.
The revenue stream from the latest contracts is expected to contribute positively to the earnings per share and net assets per share of Coastal Group for the financial year ending Dec 31, 2011.
At 3.57pm, it was down 12 sen to RM3.64. There were 749,200 shares done at prices ranging from RM3.59 to RM3.76.
In its technical outlook, CIMB Research 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.
Coastal had recently announced its units had collectively secured contracts for the sale of 11 tugboats to a company based in Central America for an aggregate value of approximately RM61 million.
Including the new contracts, Coastal Group to date has about RM665 million worth of vessel sales orders awaiting delivery to customers up to 2012.
The revenue stream from the latest contracts is expected to contribute positively to the earnings per share and net assets per share of Coastal Group for the financial year ending Dec 31, 2011.
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