KUALA LUMPUR: CIMB Equities Research said Cocoaland Holdings Bhd enjoyed a good spell over the past few days but it believes this uptrend could be challenged soon.

The research house said on Monday, July 5 that once the candles break below the support trend line (now at RM1.68), selling pressure could accelerate. And this would drag prices towards RM1.60 and RM1.50 next.

?Technical indicators are beginning to show signs of exhaustion. MACD histogram bars are losing pace while its RSI has also fallen below the support trend line,? it said.

Although CIMB Research said it cannot discount the possibility of further gains, it thinks the odds are slowly turning in favour of the bears. Therefore, traders should do well taking some profits now. Put a buy stop at RM1.85, just in case.

Cocoaland manufactures and provides foods and foodstuffs. The company trades processed and preserved foods and fruits, manufactures fruit juice and foodstuffs, and trades and distributes foodstuffs. Cocoaland provides these foods on a wholesale and retail basis.