KUALA LUMPUR (Nov 21): CIMB Equities Research has a technical sell on Coastal Contracts at RM1.87 at which it is trading at a price-to-book value of 1.3 times.
It said on Monday that Coastal Contracts is hovering in a bearish flag pattern, suggesting that the rebound from its September’s low may not be sustainable.
“If prices fail to hold on above the support channel of the flag pattern (now at RM1.78), there is a high possibility that prices may fell towards RM1.70 and RM1.62,” it said.
CIMB Research said the recent rebound lifted MACD signal line towards the zero level but RSI has hooked downward. Hence, it thinks the bears are slowing picking up.
“Use any rebound towards the RM1.91-RM2.04 to sell into strength. Unless these levels are taken out, we will rather stick with the bear’s camp,” it said.
It said on Monday that Coastal Contracts is hovering in a bearish flag pattern, suggesting that the rebound from its September’s low may not be sustainable.
“If prices fail to hold on above the support channel of the flag pattern (now at RM1.78), there is a high possibility that prices may fell towards RM1.70 and RM1.62,” it said.
CIMB Research said the recent rebound lifted MACD signal line towards the zero level but RSI has hooked downward. Hence, it thinks the bears are slowing picking up.
“Use any rebound towards the RM1.91-RM2.04 to sell into strength. Unless these levels are taken out, we will rather stick with the bear’s camp,” it said.
