KUALA LUMPUR: CIMB Equities Research has a technical sell on BATU KAWAN BHD [] at RM14.48 at which it is trading at a price-to-book value of 1.7 times.
The research house said on Tuesday, Sept 27 that Batu Kawan broke below its neckine support yesterday.
'We think that this is a prelude to more downside ahead. If we are right, the next downleg could be sharp, probably pushing prices lower towards RM13.60 and RM12.60,' it said.
CIMB Research said the technical landscape remains weak. MACD has staged a negative crossover, pushing the histogram bars into the negative territory. Meanwhile, RSI has also hooked downward.
'Sell into strength looks like a good option here as near term gains are likely capped at RM14.82-15.04. Prices need to push above its 200-day SMA to neutralise the bearish mode,' it said.
The research house said on Tuesday, Sept 27 that Batu Kawan broke below its neckine support yesterday.
'We think that this is a prelude to more downside ahead. If we are right, the next downleg could be sharp, probably pushing prices lower towards RM13.60 and RM12.60,' it said.
CIMB Research said the technical landscape remains weak. MACD has staged a negative crossover, pushing the histogram bars into the negative territory. Meanwhile, RSI has also hooked downward.
'Sell into strength looks like a good option here as near term gains are likely capped at RM14.82-15.04. Prices need to push above its 200-day SMA to neutralise the bearish mode,' it said.
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