CIMB Research has technical sell on Naim Holdings at RM1.55

KUALA LUMPUR (Dec 12): CIMB Equities Research has a technical sell on Naim Holdings at RM1.55 at which it is trading at a price-to-book value of 0.5 times.

It said on Monday Naim Holdings violated its triangle support on Friday. This is a worrying sign as it may signal the beginning of next downleg.

'If prices continue to stay below the support-turned-resistance trend line, we expect the candles to fall towards its next support levels are RM1.45 and RM1.35,' it said.

CIMB Research said the MACD is falling deeper into the negative territory while RSI has also fallen into the oversold territory.

'Unload on strength looks like a good option here, especially near the RM1.58-1.60 resistances. However, always put a buy stop at RM1.65,' it said.

CIMB Research has a Buy on Naim Holdings at RM2.73

KUALA LUMPUR: CIMB Equities Research has a Buy on Naim Holdings at RM2.73 at which it is trading at a price-to-book value of 0.9 times.

It said on Friday, May 13 Naim is trapped in a downtrend channel. Yet, this correction phase is probably at its tail end. A temporary low may have formed at the RM2.58 level, which will likely be its base for weeks ahead.

'If we are right, the stock is poised for stronger rebound. Immediate resistance is at RM2.89, followed by RM3.08 and RM3.24 next. Traders may start to nibble now to ride on this recovery wave. However, be quick to cut loss if RM2.58 is violated.

'Technical landscape is improving. MACD has staged a positive crossover while RSI too has hooked upward,' it said.