KUALA LUMPUR (Jan 6): CIMB Equities Research has a technical sell on WCT BHD [] at RM2.18 at which it is trading at a FY13 price-to-earnings of 8.1 times and price-to-book value of 1.2 times.It said on Friday that despite numerous attempts, WCT failed to push above its triangle resistance.
“It seems that the downward slopping resistance line is a level of significance and this would likely keep the bulls at bay in the near term,” it said.
CIMB Research said the technical landscape is deteriorating. MACD signal line is losing pace fast while RSI has also hooked downward.
“Our strategy here is to unload on strength, preferably near the RM2.28-2.31 resistances. Prices need to swing past above to negate our bearish stance. On the downside, a break below RM2.06 would likely drag prices towards RM1.95 and RM1.85,” the research house said.
“It seems that the downward slopping resistance line is a level of significance and this would likely keep the bulls at bay in the near term,” it said.
CIMB Research said the technical landscape is deteriorating. MACD signal line is losing pace fast while RSI has also hooked downward.
“Our strategy here is to unload on strength, preferably near the RM2.28-2.31 resistances. Prices need to swing past above to negate our bearish stance. On the downside, a break below RM2.06 would likely drag prices towards RM1.95 and RM1.85,” the research house said.
