KUALA LUMPUR (Jan 18): CIMB Equities Research has a technical sell on China Ouhua Winery Holdings at 24.5 sen at which it is trading at a price-to-book value of 0.6 times.
“China Ouhua Winery violated its wedge support yesterday. We think this is a prelude to more downside ahead. If this is indeed the beginning of its next downleg, prices should fall below 22.5 sen soon. The next downside targets are 21 sen and 19.5 sen,” it said on Wednesday.
CIMB Research said the technical landscape remains lethargic. MACD signal line is hovering in the negative territory while RSI has hooked downward.
“Sell on strength looks like a good option here as prices are trading below all its key moving averages. Near term gains are likely capped at 25.5 sen to 26 sen. Only a rise above its 50-day SMA would negate this bearish view,” it said.
“China Ouhua Winery violated its wedge support yesterday. We think this is a prelude to more downside ahead. If this is indeed the beginning of its next downleg, prices should fall below 22.5 sen soon. The next downside targets are 21 sen and 19.5 sen,” it said on Wednesday.
CIMB Research said the technical landscape remains lethargic. MACD signal line is hovering in the negative territory while RSI has hooked downward.
“Sell on strength looks like a good option here as prices are trading below all its key moving averages. Near term gains are likely capped at 25.5 sen to 26 sen. Only a rise above its 50-day SMA would negate this bearish view,” it said.
