KUALA LUMPUR (Feb 23): CIMB Equities Research has a technical sell on SEG International at RM1.96 at which it is trading at a price-to-book value of 4.8 times.
It said on Thursday that SEGi is still on its uptrend but it believes that the uptrend is coming to an end soon.
“It appears to be forming a bearish wedge pattern following yesterday’s new 52-week intra-day high,” it said.
CIMB Research said both the MACD and RSI sports multiple bearish divergences, suggesting that the uptrend could be coming to its terminal point soon.
“The confirmation would come once prices take out the wedge support at RM1.83. This breakdown would send prices mean that prices could fall fast towards RM1.56-RM1.60 next. Resistance is around the RM2 to RM2.05 mark.
"Sell on further rallies or a break below RM1.83,” the research house said.
It said on Thursday that SEGi is still on its uptrend but it believes that the uptrend is coming to an end soon.
“It appears to be forming a bearish wedge pattern following yesterday’s new 52-week intra-day high,” it said.
CIMB Research said both the MACD and RSI sports multiple bearish divergences, suggesting that the uptrend could be coming to its terminal point soon.
“The confirmation would come once prices take out the wedge support at RM1.83. This breakdown would send prices mean that prices could fall fast towards RM1.56-RM1.60 next. Resistance is around the RM2 to RM2.05 mark.
"Sell on further rallies or a break below RM1.83,” the research house said.
