KUALA LUMPUR (March 8): CIMB Research has technical sell on Hock Seng Lee at RM1.70 at which it is trading at a price-to-book value of 2.3 times.
It said on Thursday that as long as prices stay below its previous high of RM1.75, there is a possibility that Hock Seng Lee might be forming a double top pattern.
“Hence, we advocate investors to adopt a sell into strength strategy here. Near term gains are likely capped at RM1.70-RM1.75.
CIMB Research said the technical landscape is deteriorating, suggesting that buying momentum is losing pace. MACD histogram bars have slipped into the negative territory while RSI has also hooked downward.
“There is a minor support at RM1.66. Once this level is violated, we expect the candles to tumble towards the neckline support (now at RM1.57). The following support levels are RM1.49 and RM1.35. Prices need to surpass the RM1.80 level to negate this bearish view,” it said.
It said on Thursday that as long as prices stay below its previous high of RM1.75, there is a possibility that Hock Seng Lee might be forming a double top pattern.
“Hence, we advocate investors to adopt a sell into strength strategy here. Near term gains are likely capped at RM1.70-RM1.75.
CIMB Research said the technical landscape is deteriorating, suggesting that buying momentum is losing pace. MACD histogram bars have slipped into the negative territory while RSI has also hooked downward.
“There is a minor support at RM1.66. Once this level is violated, we expect the candles to tumble towards the neckline support (now at RM1.57). The following support levels are RM1.49 and RM1.35. Prices need to surpass the RM1.80 level to negate this bearish view,” it said.
