KUALA LUMPUR (March 14): CIMB Equities Research has a technical sell on Silk Holdings at 45 sen at which it is trading at a price-to-book value of 1.4 times.
The research house said on Wednesday the black marubozu pattern formed on Monday was confirmed by yesterday’s slip. It appears that the candles are likely to derail towards 42 sen, 39 sen and 36.5 sen soon.
“If the medium term uptrend channel is breached, we expect the bears to take lead. Indicators also look exhausted at the moment. MACD histogram bars are losing pace while RSI has hooked downward,” it said.
CIMB Research said any rebound is an opportunity to unload. It added that it would only review its call if the candles swing past the 50.5 sen level.
The research house said on Wednesday the black marubozu pattern formed on Monday was confirmed by yesterday’s slip. It appears that the candles are likely to derail towards 42 sen, 39 sen and 36.5 sen soon.
“If the medium term uptrend channel is breached, we expect the bears to take lead. Indicators also look exhausted at the moment. MACD histogram bars are losing pace while RSI has hooked downward,” it said.
CIMB Research said any rebound is an opportunity to unload. It added that it would only review its call if the candles swing past the 50.5 sen level.
