KUALA LUMPUR: CIMB Equities Research has a technical sell call on SEG International at RM3.97, at which it is trading at a price-to-book value of 5.1 times.
It said on Wednesday, May 18 that SEGi has seen a very strong rally without much of a pullback since hitting the November low of RM1.97.
However, prices have yet to break its key support trend line at RM3.80, and hence there is a small possibility that it could nudge above RM4.14 to RM4.25.
'We see a weakening in upward momentum via its bearish divergence on both its indicators. The sell signal on its MACD is also negative for the near term.
'We would prefer to lock some in profits now as the upside potential is way smaller than its downside risk. Sell the rest when prices break the RM3.80 levels or anything above RM4.14. A break below RM3.80 would see prices fall back towards RM3.41 and RM3.08 next,' it said.
It said on Wednesday, May 18 that SEGi has seen a very strong rally without much of a pullback since hitting the November low of RM1.97.
However, prices have yet to break its key support trend line at RM3.80, and hence there is a small possibility that it could nudge above RM4.14 to RM4.25.
'We see a weakening in upward momentum via its bearish divergence on both its indicators. The sell signal on its MACD is also negative for the near term.
'We would prefer to lock some in profits now as the upside potential is way smaller than its downside risk. Sell the rest when prices break the RM3.80 levels or anything above RM4.14. A break below RM3.80 would see prices fall back towards RM3.41 and RM3.08 next,' it said.
No comments:
Post a Comment