KUALA LUMPUR: CIMB Equities Research has a technical Sell on SBC CORPORATION BHD [] at RM1.10 at which it is trading at a price-to-book value of 0.4 times.
It said on Monday, Aug 1 the recent rebound may have exhausted. Prices hit a high of RM1.21 before selling pressure set in. It appears that the wedge resistance is a key hindrance here. As long as prices fail to swing past this level, sustainability remains a key issue.
'The bearish divergence on the MACD indicator suggests that buying momentum has faded. RSI too has hooked downward. Support is seen at RM1.04, RM1.00 and 96 sen.
'Our strategy here is to sell on strength, especially near the stipulated resistance levels. However, always put a buy stop at RM1.23, in case we underestimate the strength of the rebound,' it said.
It said on Monday, Aug 1 the recent rebound may have exhausted. Prices hit a high of RM1.21 before selling pressure set in. It appears that the wedge resistance is a key hindrance here. As long as prices fail to swing past this level, sustainability remains a key issue.
'The bearish divergence on the MACD indicator suggests that buying momentum has faded. RSI too has hooked downward. Support is seen at RM1.04, RM1.00 and 96 sen.
'Our strategy here is to sell on strength, especially near the stipulated resistance levels. However, always put a buy stop at RM1.23, in case we underestimate the strength of the rebound,' it said.
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