Wednesday, June 22, 2011

CIMB Research has Sell on Ho Wah Genting at 39.5 sen

KUALA LUMPUR: CIMB Equities Research has a technical Sell on HO WAH GENTING BHD [] [] (HWGB) at 39.5 sen at which it is trading at a price-to-book value of 3.5 times.

It said on Wednesday, June 22 that after violating its 200-day SMA, prices tried to build a base pattern. Nevertheless, these efforts were futile, with prices failing to hold on above the 40 sen level.

'Yesterday's break below the triangle support reinforces our short term bearish stance on the stock. Indicators remain lethargic. MACD is still hovering in the deep negative territory while RSI is below the 30pts mark.

'Sell into strength looks like a good option here. Near term gains are likely capped at 40 sen to 42.5 sen. On the downside, support is seen at 36.5 sen and 33.5 sen,' it said.

No comments:

Post a Comment