KUALA LUMPUR: CIMB Equities Research has a technical sell call on Hirotako Holdings at RM1.98, at which it is trading at a price-to-book value of 1.7 times.
It said on Friday, July 1 Hirotako violated its medium term support channel recently. The correction also dragged prices below its 30-day and 50-day SMAs.
CIMB Research if prices fail to bounce back above this support-turned-resistance trend line soon, there is a good chance that the stock may have peaked at RM2.09.
'The bearish divergence on its MACD indicators suggests that follow through momentum is waning. RSI has also hooked downward. The next support levels are RM1.82 and RM1.72.
'Sell into strength looks like a good option here, especially near the RM1.98-RM2.02 resistances. Only a swing above RM2.10 would cancel out our bearish stance on the stock,' it said.
It said on Friday, July 1 Hirotako violated its medium term support channel recently. The correction also dragged prices below its 30-day and 50-day SMAs.
CIMB Research if prices fail to bounce back above this support-turned-resistance trend line soon, there is a good chance that the stock may have peaked at RM2.09.
'The bearish divergence on its MACD indicators suggests that follow through momentum is waning. RSI has also hooked downward. The next support levels are RM1.82 and RM1.72.
'Sell into strength looks like a good option here, especially near the RM1.98-RM2.02 resistances. Only a swing above RM2.10 would cancel out our bearish stance on the stock,' it said.
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