KUALA LUMPUR (Dec 7): CIMB Equities Research has a technical sell on M-MODE BHD [] at 43.5 sen at which it is trading at a price-to-book value of 1.8 times.
It said on Wednesday that M-Mode is consolidating in a huge ascending wedge pattern.
“Therefore, we are worried about its follow through momentum. If prices fail to surpass the recent high of 44.5 sen soon, there is a high possibility that the candles may ease towards the support trend line,” it said.
CIMB Research said the bearish divergence on the MACD indicator suggests that the bulls are losing steam. RSI too has hooked downward.
The research house said aggressive traders may want to lock in some profits now while others should wait for a break below the wedge support (now at 40 sen) before joining the bear’s camp. Next support levels are 37 sen and 35 sen.
It said on Wednesday that M-Mode is consolidating in a huge ascending wedge pattern.
“Therefore, we are worried about its follow through momentum. If prices fail to surpass the recent high of 44.5 sen soon, there is a high possibility that the candles may ease towards the support trend line,” it said.
CIMB Research said the bearish divergence on the MACD indicator suggests that the bulls are losing steam. RSI too has hooked downward.
The research house said aggressive traders may want to lock in some profits now while others should wait for a break below the wedge support (now at 40 sen) before joining the bear’s camp. Next support levels are 37 sen and 35 sen.
