BENALEC’s bearish technical picture grabbed our attention as the share price has broken down below the crucial long-term horizontal support @RM1.10 as investors reacted negatively on the news of a board tussle in the company, according to media reports. Technically speaking, the share price is facing selling pressure with immediate support now pegged at RM0.960 (measurement objective) and RM0.920 (Fibonacci) next. Falling below these supports may mean further downside with @RM0.870 (Fibonacci) as the next support level. Chart-wise, we are very cautious on the stock given the sudden breakdown. Hence, we would like to highlight the downside risk to investors.

 

Source: Kenanga