Amid weaker market sentiment on small cap stocks, DBHD dipped 15 sen (-7.98%) to close at RM1.73 yesterday. From a technical perspective, a bearish “Marubozu” candlestick has taken shape on the daily chart, indicating that selling pressure was particularly strong yesterday. Meanwhile, the MACD and its histogram continued to slide lower, nearly issuing a negative cross-over signal. Taken all these into consideration, we believe that further weakness is developing and the stock could be poised for a correction from the current overbought level. Hence, we suggest traders to take profit for now, and maybe look to buy back at a lower entry price of RM1.51 (coincides with the 30-day SMA support level).

 

Source: Kenanga