KUALA LUMPUR: Shares of HO WAH GENTING BHD [] [] (HWGB) fell in early trade on Tuesday, May 3 after CIMB Equities Research had a technical Sell call on the shares.
At 9.20am, HWGB was down 3.5 sen to 63.5 sen with 4.47 million shares done.
The FBM KLCI rose 2.23 points to 1,537.18. Turnover was 100.80 million shares valued at RM56.74 million. There were 168 gainers, 87 losers and 161 stocks unchanged.
CIMB Research had a Sell on HWGB at 67 sen, at which it is trading at a price-to-book value of 3.2 times.
It said 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.
At 9.20am, HWGB was down 3.5 sen to 63.5 sen with 4.47 million shares done.
The FBM KLCI rose 2.23 points to 1,537.18. Turnover was 100.80 million shares valued at RM56.74 million. There were 168 gainers, 87 losers and 161 stocks unchanged.
CIMB Research had a Sell on HWGB at 67 sen, at which it is trading at a price-to-book value of 3.2 times.
It said 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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