KUALA LUMPUR (Feb 28): CIMB Equities Research is maintaining its technical sell call on Sarawak Oil Palms at RM6.17 at which it is trading at a price-to-book value of 2.2 times.
It said on Tuesday that Sarawak Oil Palms did indeed form a bearish wedge pattern as suggested earlier on Jan 20 but the wedge pattern extended on the upside and ticked off its buy stop at RM6.16.
“We believe that another selling opportunity is at hand here. The bearish divergence on its MACD and RSI show that buying momentum has waned. RSI has also moved down from its overbought territory.
“A close below the key support at RM6.15 would confirm the reversal and prices could soon fall towards RM5.34-RM5.55 next. Put a buy stop at above RM6.45, just in case,” CIMB Research said.
It said on Tuesday that Sarawak Oil Palms did indeed form a bearish wedge pattern as suggested earlier on Jan 20 but the wedge pattern extended on the upside and ticked off its buy stop at RM6.16.
“We believe that another selling opportunity is at hand here. The bearish divergence on its MACD and RSI show that buying momentum has waned. RSI has also moved down from its overbought territory.
“A close below the key support at RM6.15 would confirm the reversal and prices could soon fall towards RM5.34-RM5.55 next. Put a buy stop at above RM6.45, just in case,” CIMB Research said.
