Tuesday, August 9, 2011

CIMB Research has technical Sell on Digistar Corp

KUALA LUMPUR: CIMB Equities Research has a technical sell call on Digistar Corp Bhd at 41.5 sen at which it is trading at a price-to-book value of 41.5 sen.

It said on Tuesday, Aug 9 Digistar violated its key support neckline on Monday on rising volume. The breakdown has confirmed its head & shoulder reversal pattern here.

'Technical landscape continued to look weak. MACD has slipped further into the negative territory while RSI has hooked sharp lower. We expect prices to see weaker prices ahead,' it said.

CIMB Research said the stock is a sell now with a stop placed above the neckline at 44 sen.

Based on the head & shoulders pattern, the stock would have a downside target of 34 sen. Its 200-day SMA at 29 sen could also act as a magnet for prices.

Digistar integrates IT infrastructure, teleconferencing, LANs, interactive media management systems, radio and television news automation, telecommunication systems and other related electronic systems.

No comments:

Post a Comment