Instacom’s bearish technical picture caught our attention as the share price has broken down below the uptrend crucial support @RM0.260 following the news that two of its major shareholders had pared down their interests in the company, according to media reports. Similarly, key indicators such as RSI, MACD and Stochastic are negatively biased. The share price has declined over 25% from RM0.35 since 4-Nov-13. We believe the downside risk is higher now after the breakdown with RM0.22 (Fibonacci) as the next crucial support level for the stock. Hence, we are highlighting the potential downside risk to investors.

 

Source: Kenanga