KUALA LUMPUR: CIMB Equities Research has a Technical Sell on WCT BHD [] at RM2.97 at which it is trading at a FY12 price-to-earnings of 13.5 times and price-to-book value of 1.8 times.
It said on Wednesday, July 20 WCT violated its flag support on Tuesday. The correction also dragged prices below its key moving averages.
'Looking at the chart, it appears that there is still room to the downside. Indicators are showing signs of weakness,' it said.
CIMB Research said the MACD histogram bars have slipped into the negative territory while RSI has also hooked downward.
If prices fail to hold on above yesteday's low of RM2.89, the following support levels are RM2.82 and RM2.70.
'Traders should do well selling into strength. Near term gains are likely capped at RM3.08-3.12, its 50-day and 200-day SMAs respectively. Only a swing above RM3.20 would prompt us to re-evaluate our call,' it said.
It said on Wednesday, July 20 WCT violated its flag support on Tuesday. The correction also dragged prices below its key moving averages.
'Looking at the chart, it appears that there is still room to the downside. Indicators are showing signs of weakness,' it said.
CIMB Research said the MACD histogram bars have slipped into the negative territory while RSI has also hooked downward.
If prices fail to hold on above yesteday's low of RM2.89, the following support levels are RM2.82 and RM2.70.
'Traders should do well selling into strength. Near term gains are likely capped at RM3.08-3.12, its 50-day and 200-day SMAs respectively. Only a swing above RM3.20 would prompt us to re-evaluate our call,' it said.
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