KUALA LUMPUR (Dec 15): CIMB Equities Research has a technical sell on Texchem Resources at which it is trading at a price-to-book value of 0.4 times.
The research house said on Thursday Texchem violated the triangle support few days ago and it anticipated there was still risk to the downside.
“If prices fail to swing back above the support-turned-resistance channel (now at 56 sen) soon, the next downleg is likely to drag prices towards RM0.47 and 42 sen,” it said.
CIMB Research said the technical landscape was deteriorating fast. MACD signal line was falling deeper into the negative zone while RSI was below the 50pts mark.
“Sell into strength looks like a good option here, especially near the 51 sen to 55 sen resistance,” it said.
The research house said on Thursday Texchem violated the triangle support few days ago and it anticipated there was still risk to the downside.
“If prices fail to swing back above the support-turned-resistance channel (now at 56 sen) soon, the next downleg is likely to drag prices towards RM0.47 and 42 sen,” it said.
CIMB Research said the technical landscape was deteriorating fast. MACD signal line was falling deeper into the negative zone while RSI was below the 50pts mark.
“Sell into strength looks like a good option here, especially near the 51 sen to 55 sen resistance,” it said.
