KUALA LUMPUR: CIMB Equities Research has a technical sell call on Century Software Holdings at 52 sen which it is trading at a price-to-book value of 6.9 times.
It said on Tuesday, Aug 9 after the violation of its neckline support, prices tumbled sharply with another black candle on Monday. The long candle has now taken prices to a new five-month low.
'However, it has also taken the RSI to oversold levels. We would not be surprised if prices rebounded in the near term but the overall trend is now down following the confirmation of its head & shoulders pattern. The MACD has also widened further, suggesting that any rebound is likely to be short-lived,' it said.
CIMB Research advised investors to use any rebound towards 55 sen to 58 sen as a chance to sell into strength.
The neckline at 62 sen is also a strong resistance levels. Prices could potentially retest the all time low of 47 sen in the coming weeks. A break below would see prices retest 42 sen to 44 sen next, based on 1.618x of the width of its head to the neckline.
Century Software designs, develops, implements, and markets financial management software and services.
It said on Tuesday, Aug 9 after the violation of its neckline support, prices tumbled sharply with another black candle on Monday. The long candle has now taken prices to a new five-month low.
'However, it has also taken the RSI to oversold levels. We would not be surprised if prices rebounded in the near term but the overall trend is now down following the confirmation of its head & shoulders pattern. The MACD has also widened further, suggesting that any rebound is likely to be short-lived,' it said.
CIMB Research advised investors to use any rebound towards 55 sen to 58 sen as a chance to sell into strength.
The neckline at 62 sen is also a strong resistance levels. Prices could potentially retest the all time low of 47 sen in the coming weeks. A break below would see prices retest 42 sen to 44 sen next, based on 1.618x of the width of its head to the neckline.
Century Software designs, develops, implements, and markets financial management software and services.
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