KUALA LUMPUR: CIMB Equities Research has a Sell on Ho Wah Genting Bhf at 67 sen, at which it is trading at a price-to-book value of 3.2 times.
It said on Tuesday, May 3 HWGB is gyrating in a bearish flag pattern. Although prices could still inch a tad higher from here, it was worried about its medium term sustainability.
CIMB Research said if the 50-day SMA fails to hold, the support channel at 60 sen will be the next target.
Technical landscape remains subdued. MACD is still losing pace while RSI has slipped below the 50pts mark. Once the RM0.60 level is breached, prices would likely fall towards 56.5 sen and 51.5 sen.
'Our strategy here is to unload on strength, preferably near the 70 sen to 72 sen resistances. However, always put a buy stop at 73 sen, in case we underestimate the strength of this rebound,' it said.
It said on Tuesday, May 3 HWGB is gyrating in a bearish flag pattern. Although prices could still inch a tad higher from here, it was worried about its medium term sustainability.
CIMB Research said if the 50-day SMA fails to hold, the support channel at 60 sen will be the next target.
Technical landscape remains subdued. MACD is still losing pace while RSI has slipped below the 50pts mark. Once the RM0.60 level is breached, prices would likely fall towards 56.5 sen and 51.5 sen.
'Our strategy here is to unload on strength, preferably near the 70 sen to 72 sen resistances. However, always put a buy stop at 73 sen, in case we underestimate the strength of this rebound,' it said.
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