KUALA LUMPUR (Feb 17): CIMB Equities Research has a technical sell on Three-A Resources at RM1.30 at which it trading at a price-to-book value of 2.6 times.
It said on Friday that Three-A violated the wedge support few days. On Thursday, the stock also breached the 200-day SMA.
“If the candles continue to remain below this moving average, we anticipate selling pressure to pick up strongly. The next downleg is likely to push prices lower towards RM1.22 and RM1.14,” it said.
CIMB Research said the indicators are showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has hooked downward. The 30-day and 50-day SMAs will also be magnet for prices.
“Unload on strength looks like a good option here, especially near the RM1.32-RM1.35 resistances. Unless prices swing back above the RM1.38 level, we would rather stick with the bear’s camp for now,” it said.
It said on Friday that Three-A violated the wedge support few days. On Thursday, the stock also breached the 200-day SMA.
“If the candles continue to remain below this moving average, we anticipate selling pressure to pick up strongly. The next downleg is likely to push prices lower towards RM1.22 and RM1.14,” it said.
CIMB Research said the indicators are showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has hooked downward. The 30-day and 50-day SMAs will also be magnet for prices.
“Unload on strength looks like a good option here, especially near the RM1.32-RM1.35 resistances. Unless prices swing back above the RM1.38 level, we would rather stick with the bear’s camp for now,” it said.
