KUALA LUMPUR (Dec 14): CIMB Equities Research has a technical sell on Ann Joo Resources at RM1.79 at which it is trading at a FY13 price-to-earnings of 5.6 times and price-to-book value of 0.8 times.
It said on Wednesday that Ann Joo Resources violated its descending triangle pattern on Tuesday.
“We see this as a prelude to more downside ahead. If the candles continue to stay below the support-turned-resistance trend line, expect selling pressure to accelerate soon. Next support levels are RM1.70 and RM1.55,” it said.
CIMB Research said the MACD signal line is hovering in the negative territory while RSI has also hooked downward. The deteriorating technical landscape does not bode well for the stock.
“As long as prices stay below the RM1.84 level, the odds will continue to favour the bears. Put a buy stop at RM1.90, just in case,” it said.
It said on Wednesday that Ann Joo Resources violated its descending triangle pattern on Tuesday.
“We see this as a prelude to more downside ahead. If the candles continue to stay below the support-turned-resistance trend line, expect selling pressure to accelerate soon. Next support levels are RM1.70 and RM1.55,” it said.
CIMB Research said the MACD signal line is hovering in the negative territory while RSI has also hooked downward. The deteriorating technical landscape does not bode well for the stock.
“As long as prices stay below the RM1.84 level, the odds will continue to favour the bears. Put a buy stop at RM1.90, just in case,” it said.
