KUALA LUMPUR: CIMB Equities Research has a technical sell call on SEGI International at RM2 at which it is trading at a price to book value of 5.2 times.
It said on Tuesday, July 19 that SEGI broke below its uptrend support line back in May but the bulls managed to push prices to new highs in last week.
However, it formed a bearish harami pattern at the high and prices have been falling ever since.
'With its MACD about to reconfirm its dead crossover, we think that prices are likely to correct lower in the short to medium term. The RSI has already issued a sell signal, which is also negative. The triple bearish divergence on both indicators suggests that the bulls are likely exhausted.
'Sell into strength looks like a good option here. A break below its moving averages would confirm that prices are heading towards RM1.70 and RM1.52, its 200-day SMA next. Resistance at RM2.09,' it said.
It said on Tuesday, July 19 that SEGI broke below its uptrend support line back in May but the bulls managed to push prices to new highs in last week.
However, it formed a bearish harami pattern at the high and prices have been falling ever since.
'With its MACD about to reconfirm its dead crossover, we think that prices are likely to correct lower in the short to medium term. The RSI has already issued a sell signal, which is also negative. The triple bearish divergence on both indicators suggests that the bulls are likely exhausted.
'Sell into strength looks like a good option here. A break below its moving averages would confirm that prices are heading towards RM1.70 and RM1.52, its 200-day SMA next. Resistance at RM2.09,' it said.
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