UOADEV’s technical outlook is treading on thin ice after it fell to its previous low @RM2.00 as investors focused on the group’s high exposure risk to Developer Interest Bearing Scheme (DIBS) following the government's move to cease the scheme recently. Chart-wise, the sell-off seems mild and not overdone. Key indicators such as RSI and MACD have yet to show any signs of rebound despite the share price succumbing near to the crucial long-term Fibonacci support level @RM1.95. A breakdown below the support level may reinforce the downtrend towards RM1.77. Nonetheless, with a consistent high dividend payout annually giving a yield of 7.00% at the support level, buying interest may emerge on lower prices.

 

Source: Kenanga