KUALA LUMPUR (March 5): CIMB Equities Research has a technical sell on Wijaya Baru Global at 78 sen at which it is trading at a price-to-book value of 0.8 times.
CIMB Research said on Monday that Wijaya Baru has been gyrating in a rising wedge pattern for a long time and the recent fall could be seen as a prelude to more downside ahead," it said.
"If we are right, selling pressure should accerate in days to comme, if not weeks, unless prices swing back above the support-turned-resistance trend line," it said.
The research house said the MACD signal line has slipped into the negative territory. RSI is also below the 50pts mark. Hence, the odds are slightly favouring the bears.
"Use any rebound towards 79 sen to 82 sen to unload on strength. Unless prices swing past the RM0.845 level, we would rather stick with the bear’s camp.The support is at 72.5 sen and 68 sen," it said.
CIMB Research said on Monday that Wijaya Baru has been gyrating in a rising wedge pattern for a long time and the recent fall could be seen as a prelude to more downside ahead," it said.
"If we are right, selling pressure should accerate in days to comme, if not weeks, unless prices swing back above the support-turned-resistance trend line," it said.
The research house said the MACD signal line has slipped into the negative territory. RSI is also below the 50pts mark. Hence, the odds are slightly favouring the bears.
"Use any rebound towards 79 sen to 82 sen to unload on strength. Unless prices swing past the RM0.845 level, we would rather stick with the bear’s camp.The support is at 72.5 sen and 68 sen," it said.
