Monday, July 18, 2011

CIMB Research has technical Sell on Digistar

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Digistar Corp at 49.5 sen at which it is trading at a price-to-book value of 49.5 sen.

It said on Monday, July 18 the rally from its November 2010 low is at stake.

'Prices violated the wedge support and are now sitting just a tad above its 30-day SMA. If the 50-day SMA is also breached, then it may possibly signal that the trend has reversed,' it said.

CIMB Research said the indicators are showing signs of exhaustion. The bearish divergence on its MACD suggests that follow through momentum is fading. Meanwhile, RSI too has hooked downward.

'As near term gains are likely capped at 51 sen to 53.5 sen, we would rather stick with the bear's camp. Only a swing above 54 sen would alter our view. On the downside, support is seen at 46.5 sen and 43.5 sen.

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