Carlsberg Brewery Malaysia Bhd ("CAB") has been
trading on top of an upward sloping support line since Sep-2011. However, the
stock recently breached below the support line as well as the 100-day SMA line.
CAB’s selling streak started on 21 Sep with a bearish “Marubozu” followed by a near
perfect “identical Three Crows” formed during
the past three days. These strong bearish indicators were further
supported by the Stochastic and RSI, which have both dipped downwards.
Technically, the share price is likely to continue its downward move towards
the support line at RM10.40.
On the weekly chart, CAB has been trading within an upward
trend channel and is firmly above the 20-week SMA. Last week’s candlestick shows
a breach in the trend line, followed by a black candlestick this week, which
confirmed the end of the trend. The MACD is diverging and moving downwards,
together with an increase in the
south-bound histogram. We believe the selloff will continue as both the
Stochastic and RSI are negative as well. The support will be at RM10.20 where
the share price will meet its 50-week SMA. However, the Stochastic oscillator
is currently in oversold territory, hence a rebound is still possible towards the
RM11.80 resistance.
Source: Kenanga
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