KUALA LUMPUR (Feb 2): CIMB Equities Research has a technical sell on Versatile Creative at 53 sen at which it is trading at a price-to-book value of 1.2 times.
It said on Thursday that Versatile Creative violated its wedge support few days ago and it believes this is a prelude to more downside ahead.
“If we are right, the candles should fall towards 50 sen and 46.5 sen soon. Selling pressure will intensify when the 30-day SMA is breached,” it said.
CIMB Research said the bearish divergence on the MACD indicator shows that buying momentum is losing steam. RSI has also fallen below the overbought territory.
“Traders should do well selling into strength as near term gains are likely capped at 54 sen to 55.5 sen. Put a buy stop at 58 sen, just in case,” it said.
It said on Thursday that Versatile Creative violated its wedge support few days ago and it believes this is a prelude to more downside ahead.
“If we are right, the candles should fall towards 50 sen and 46.5 sen soon. Selling pressure will intensify when the 30-day SMA is breached,” it said.
CIMB Research said the bearish divergence on the MACD indicator shows that buying momentum is losing steam. RSI has also fallen below the overbought territory.
“Traders should do well selling into strength as near term gains are likely capped at 54 sen to 55.5 sen. Put a buy stop at 58 sen, just in case,” it said.
