KUALA LUMPUR: CIMB Equities Research has a technical sell call on United U-Li Corporation at 99 sen at which it is trading at a price-to-book value of 0.8 times.
It said on Wednesday, Sept 28 that since it featured United U-Li as a technical buy stock two days ago, prices surged more than 20% to hit a high of RM1.07 before closing at 99 sen on Tuesday.
CIMB Research said the sharp rise lifted prices towards the resistance channel and the bears have since re-surfaced.
'The rebound failed to push the candles above its 30-day SMA, suggesting that follow through momentum is waning. Hence, traders should consider taking profits now, especially near the RM1.03-RM1.07 resistances.
'Indicators remain compelling but we think that longer term trend is still down. Support is seen at 95 sen, 90.5 sen and 85 sen,' it said.
It said on Wednesday, Sept 28 that since it featured United U-Li as a technical buy stock two days ago, prices surged more than 20% to hit a high of RM1.07 before closing at 99 sen on Tuesday.
CIMB Research said the sharp rise lifted prices towards the resistance channel and the bears have since re-surfaced.
'The rebound failed to push the candles above its 30-day SMA, suggesting that follow through momentum is waning. Hence, traders should consider taking profits now, especially near the RM1.03-RM1.07 resistances.
'Indicators remain compelling but we think that longer term trend is still down. Support is seen at 95 sen, 90.5 sen and 85 sen,' it said.
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