KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Paramount Corporation at RM1.99'' at which it is trading at a price-to-book value of 1.0 times.
It said on Wednesday, July 20 the uptrend channel from its Dec 2010 low is at stake. Prices failed to stay above its 30-day and 50-day SMAs and these could be seen as a prelude to more downside ahead.
'Although we could not completely write off the possibility of further upward swing, we think traders ought to be cautious,' it said.
CIMB Research said the MACD had slipped into the negative territory, suggesting that Paramount is in a consolidation mode. RSI too is below the 50pts mark.
'Aggressive traders may start to offload some position here while others should wait for a break below RM1.95 before going short. Next support levels are RM1.86 and RM1.70,' it said.
It said on Wednesday, July 20 the uptrend channel from its Dec 2010 low is at stake. Prices failed to stay above its 30-day and 50-day SMAs and these could be seen as a prelude to more downside ahead.
'Although we could not completely write off the possibility of further upward swing, we think traders ought to be cautious,' it said.
CIMB Research said the MACD had slipped into the negative territory, suggesting that Paramount is in a consolidation mode. RSI too is below the 50pts mark.
'Aggressive traders may start to offload some position here while others should wait for a break below RM1.95 before going short. Next support levels are RM1.86 and RM1.70,' it said.
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