KUALA LUMPUR (Jan 20): CIMB Equities Research has a technical sell on Sarawak Oil Palms at RM5.99 at which it is trading at a price-to-book value of 2.2 times.
It said on Friday that Sarawak Oil Palms is gyrating in a bearish wedge pattern, suggesting that the uptrend from its December low may be coming to an end soon.
“However, prices need to fall below RM5.77 to confirm that the trend has reversed. Once RM5.77 is breached, we expect prices to fall towards RM5.50 and RM5.34,” it said.
CIMB Research said the bearish divergence on its MACD indicator shows that buying momentum has waned. RSI is also trading at an overbought territory.
“Aggressive traders may start to unload some position now while others should join the seller’s camp only when the candles fall below the RM5.77 level. Put a buy stop at RM6.16, just in case,” it said.
It said on Friday that Sarawak Oil Palms is gyrating in a bearish wedge pattern, suggesting that the uptrend from its December low may be coming to an end soon.
“However, prices need to fall below RM5.77 to confirm that the trend has reversed. Once RM5.77 is breached, we expect prices to fall towards RM5.50 and RM5.34,” it said.
CIMB Research said the bearish divergence on its MACD indicator shows that buying momentum has waned. RSI is also trading at an overbought territory.
“Aggressive traders may start to unload some position now while others should join the seller’s camp only when the candles fall below the RM5.77 level. Put a buy stop at RM6.16, just in case,” it said.
