KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical sell on China Ouhua Winery Holdings at 22 sen at which it is trading at a price-to-book value of 0.6 times.
It said on Wednesday that China Ouhua violated its triangle support on Tuesday.
“We view this as a prelude to more downside ahead. If we are right, the next downleg is likely to drag prices back to its previous low of 19.5 sen again, before heading towards 16 sen next. There is a minor support at 20.5 sen,” it said.
CIMB Research said the technical indicators were showing signs of exhaustion. MACD signal line had staged a dead cross while RSI is below the 50 pts mark.
“Unless prices bounce back above its 30-day and 50-day SMAs soon (at 26 sen and 25.5 sen respectively), unload on strength looks like a good option here,” said the research house.
It said on Wednesday that China Ouhua violated its triangle support on Tuesday.
“We view this as a prelude to more downside ahead. If we are right, the next downleg is likely to drag prices back to its previous low of 19.5 sen again, before heading towards 16 sen next. There is a minor support at 20.5 sen,” it said.
CIMB Research said the technical indicators were showing signs of exhaustion. MACD signal line had staged a dead cross while RSI is below the 50 pts mark.
“Unless prices bounce back above its 30-day and 50-day SMAs soon (at 26 sen and 25.5 sen respectively), unload on strength looks like a good option here,” said the research house.
