KUALA LUMPUR (Dec 16): CIMB Equities Research has a technical sell on DiGi.com at RM3.62 at which it is trading at a FY13 price-to-earnings of 15.1 times and price-to-book value of 21.6 times.
It said on Friday the rebound from its September’s low is at stake. Prices violated its triangle support on Thursday and the research house sees this as a prelude to more downside ahead.
“If the candles continue to stay below the support trend line, there is a high possibility that prices may de-rate towards RM3.44 and RM3.35 soon,” it said.
CIMB Research said the MACD signal line had staged a dead cross while RSI had also slipped below the overbought line.
“Use any rebound to unload on strength as near term gains are likely capped at RM3.65-RM3.77. Only a swing above RM3.81 would prompt us to review our call,” it said.
It said on Friday the rebound from its September’s low is at stake. Prices violated its triangle support on Thursday and the research house sees this as a prelude to more downside ahead.
“If the candles continue to stay below the support trend line, there is a high possibility that prices may de-rate towards RM3.44 and RM3.35 soon,” it said.
CIMB Research said the MACD signal line had staged a dead cross while RSI had also slipped below the overbought line.
“Use any rebound to unload on strength as near term gains are likely capped at RM3.65-RM3.77. Only a swing above RM3.81 would prompt us to review our call,” it said.
