OSK Research said Sime Darby is resuming its correction in the down phase and is now approaching a critical support at the RM7.47 level.

In its technical outlook for Sime issued on Tuesday, July 6, it said a break below the RM7.47 level is very likely to invite strong selling pressure.

?If this crucial support level is violated, the odds are high that it will retrace to the RM7.00 level, or even the RM6.53 level. To the upside, immediate resistance lies at the RM7.77 level, followed by the RM8.00 level, and the RM8.20 level,? it said.

OSK Research said both the near-term and mid-term technical outlooks of Sime Darby are now aligned with a bearish bias. The stock has been creating major lower highs since the beginning of this year.