KUALA LUMPUR (Jan 9): CIMB Equities Research has a technical sell on HOVID BHD [] at 24.5 sen at which it is trading at a price-to-book value of 1.9 times.
It said on Monday Hovid is trading at the upper band of its trading range. The resistance trend line is a level of significance and traders should not underestimate the strength of the bears.
“Technical landscape is deteriorating. MACD has staged a dead cross while RSI is dwindling towards the 50 level.
“Use any rebound towards 25 sen to 26 sen to unload on strength. Once the 30-day SMA is breached, expect prices to fall towards 23 sen and 21.5 sen. Prices need to climb above 27 sen to negate this bearish view,” it said.
It said on Monday Hovid is trading at the upper band of its trading range. The resistance trend line is a level of significance and traders should not underestimate the strength of the bears.
“Technical landscape is deteriorating. MACD has staged a dead cross while RSI is dwindling towards the 50 level.
“Use any rebound towards 25 sen to 26 sen to unload on strength. Once the 30-day SMA is breached, expect prices to fall towards 23 sen and 21.5 sen. Prices need to climb above 27 sen to negate this bearish view,” it said.
