Wednesday, November 2, 2011

CIMB Research has technical sell on Envair

KUALA LUMPUR (Nov 2): CIMB Equities Research has a technical sell on at Envair Holdings at 41.5 sen at which it is trading at a price-to-book value of 5.7 times.

It said on Wednesday the stock recently formed a tweezer top pattern following the formation of two graveyard doji patterns in a matter of weeks. We expect this reversal pattern to kick in soon.

'Technical landscape is beginning to weaken with its MACD histogram starting to ease. Its RSI also sports a bearish divergence signal.

'Traders would likely be better off taking profits now as the tweezer top would likely send prices back lower towards the 31.5 sen levels and possibly even the 26.5 sen to 28 sen levels. A breakout above 44 sen may delay this pullback for a while longer,' it said.

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