KUALA LUMPUR (Feb 2): CIMB Equities Research has a technical sell on SKP Resources at 42 sen at at which it is trading at a price-to-book value of 1.6 times.
It said on Thursday that the uptrend from its January's low may be coming to an end. The black candle formed on the previous trading day confirmed the reversal signal. If this is indeed the beginning of a downtrend, the candles must not rise above its recent high of 43.5 sen.
“Indicators are showing signs of exhaustion. MACD histogram bars are starting to lose strength while RSI has also hooked downward. These easing trends do not bode well for the stock.
“Unload on strength looks like a good option here, especially near the 43.5 sen high. The next downleg is going to drag prices towards 39 sen and 36.5 sen. Put a buy stop at 44 sen, just in case,” CIMB Research said.
It said on Thursday that the uptrend from its January's low may be coming to an end. The black candle formed on the previous trading day confirmed the reversal signal. If this is indeed the beginning of a downtrend, the candles must not rise above its recent high of 43.5 sen.
“Indicators are showing signs of exhaustion. MACD histogram bars are starting to lose strength while RSI has also hooked downward. These easing trends do not bode well for the stock.
“Unload on strength looks like a good option here, especially near the 43.5 sen high. The next downleg is going to drag prices towards 39 sen and 36.5 sen. Put a buy stop at 44 sen, just in case,” CIMB Research said.
