KUALA LUMPUR (Feb 15): CIMB Equities Research has a technical sell on Hock Seng Lee at RM1.65 at which it is trading at a price-to-book value of 2.3 times.
It said on Wednesday that Tuesday’s black candle confirmed the bearish reversal pattern on Monday.
“It seems that the RM1.75 high would likely be its near term resistance. The next downleg could potentially bring prices towards RM1.58 and RM1.49,” it said.
CIMB Research said the easing technical readings do not bode well for the stock. MACD histogram bars are losing ground while RSI has also hooked downward.
“Once the short term support at RM1.63 is violated, expect selling pressure to accelerate. Hence, any rebound is an opportunity to sell into strength. Put a buy stop at RM1.76, just in case,” it said.
It said on Wednesday that Tuesday’s black candle confirmed the bearish reversal pattern on Monday.
“It seems that the RM1.75 high would likely be its near term resistance. The next downleg could potentially bring prices towards RM1.58 and RM1.49,” it said.
CIMB Research said the easing technical readings do not bode well for the stock. MACD histogram bars are losing ground while RSI has also hooked downward.
“Once the short term support at RM1.63 is violated, expect selling pressure to accelerate. Hence, any rebound is an opportunity to sell into strength. Put a buy stop at RM1.76, just in case,” it said.
