A cautious outlook on GAB was sounded by analysts as consumer spending could be dampened by the government’s subsidies rationalisation program. In fact, the stock has been bashed down by 34% from its recent high (RM22.16) in 20th June 2013. Near-term technical outlook of the stock is bearish, as it now stays below all short, mid and longterm SMA levels. In fact, it has just broken down from the previous support-turnedresistance level @ RM15.35. Readings from the key momentum indicators suggested that the sell-down could be grossly overdone with a potential technical rebound. However, there is no sign yet of a rebound at this juncture. Therefore, we would recommend investors to avoid this stock for now. Immediate support level is at RM14.00, which is expected to be retested if the selling pressure continues into the next few days.
Source: Kenanga