KUALA LUMPUR (Nov 23): CIMB Research has a technical sell on Damansara Realty at 73 sen, at which it is trading at a price-to-book value of 1.8 times.
It said on Wednesday Damansara Realty violated its support trend line on Monday. “The pullback also dragged prices below its 30-day SMA. If prices fail to swing back above this support-turned-resistance trend line (now at 80 sen) soon, there is a high possibility that prices may fell towards 68 sen and 62 sen,” it said.
CIMB Research cautioned that the technical landscape is deteriorating. The bearish divergence on the MACD indicator shows that follow through momentum is weakening while RSI is also below the 50pts mark.
“Although some support can be found near its 50-day SMA (now at 69 sen), we think the odds are favouring the bears. Hence, our strategy here is to unload on strength, preferably near the 77 sen to 80 sen resistances,” it said.
It said on Wednesday Damansara Realty violated its support trend line on Monday. “The pullback also dragged prices below its 30-day SMA. If prices fail to swing back above this support-turned-resistance trend line (now at 80 sen) soon, there is a high possibility that prices may fell towards 68 sen and 62 sen,” it said.
CIMB Research cautioned that the technical landscape is deteriorating. The bearish divergence on the MACD indicator shows that follow through momentum is weakening while RSI is also below the 50pts mark.
“Although some support can be found near its 50-day SMA (now at 69 sen), we think the odds are favouring the bears. Hence, our strategy here is to unload on strength, preferably near the 77 sen to 80 sen resistances,” it said.
