The bearish sentiment on the broader market coupled with the recent psychological technical breakdown (@RM10.00) has dragged LAFMSIA to RM9.11 (-45 sen) yesterday. In fact, the stock has formed a long bearish “Marubozu” candlestick yesterday, which suggests a continuing downtrend. Similarly, key indicators such as RSI, MACD and Stochastic dived deeper towards oversold condition. Hence, we believe any potential upside reversal might be short-lived for now. Should the nearterm support @RM9.00 fail to sustain in the near-term, we suggest trader to look down further to RM8.50-RM8.30 for more attractive entry levels.

 

Source: Kenanga