KUALA LUMPUR (Jan 31): CIMB Equities Research has a technical sell on DiGi.com at RM3.94 at which it is trading at a FY13 price-to-earnings of 16.4 times and price-to-book value of 23.5 times.
It said on Tuesday that DiGi was consolidating in a bearish flag pattern, suggesting that buying momentum was losing pace.
“If the support trend line (now at RM3.90) gives way, there is a high possibility that the stock may correct towards RM3.74 and RM3.44,” it said.
CIMB Research said selling pressure was expected to accelerate if prices fall below its moving averages at RM3.82 to RM3.73.
“Risk adverse investors may start to lock in some profits now. Put a buy stop at RM4.05, just in case.
“Indicators are deteriorating. MACD shows a bearish divergence while RSI has also turned flattish,” it said.
It said on Tuesday that DiGi was consolidating in a bearish flag pattern, suggesting that buying momentum was losing pace.
“If the support trend line (now at RM3.90) gives way, there is a high possibility that the stock may correct towards RM3.74 and RM3.44,” it said.
CIMB Research said selling pressure was expected to accelerate if prices fall below its moving averages at RM3.82 to RM3.73.
“Risk adverse investors may start to lock in some profits now. Put a buy stop at RM4.05, just in case.
“Indicators are deteriorating. MACD shows a bearish divergence while RSI has also turned flattish,” it said.
