KUALA LUMPUR (Dec 12): CIMB Equities Research has a technical sell on Meda Inc at 56.5 sen at which it is trading at a price-to-book value of 1.5 times.
It said on Monday Meda is consolidating in a huge ascending wedge pattern and this is usually perceived as a reversal sign.
“If prices fail to swing past the recent swing high of 59 sen soon, there is a high possibility that prices may dwindle towards the 54 sen support trend line. The following support levels are 52 sen and 49.5 sen,” it said.
CIMB Research said aggressive traders may start to lock in some profits now while others should only join the seller’s camp when prices slip below the support trend line. Near term gains are likely capped at 59 sen. Put a buy stop at 60 sen.
The research house said the bearish divergence on MACD indicator shows that buying momentum is weakening. RSI too has hooked downward.
It said on Monday Meda is consolidating in a huge ascending wedge pattern and this is usually perceived as a reversal sign.
“If prices fail to swing past the recent swing high of 59 sen soon, there is a high possibility that prices may dwindle towards the 54 sen support trend line. The following support levels are 52 sen and 49.5 sen,” it said.
CIMB Research said aggressive traders may start to lock in some profits now while others should only join the seller’s camp when prices slip below the support trend line. Near term gains are likely capped at 59 sen. Put a buy stop at 60 sen.
The research house said the bearish divergence on MACD indicator shows that buying momentum is weakening. RSI too has hooked downward.
