MAXIS share price dropped 24 sen (-3.48%) yesterday to RM6.66 following an analysts' briefing last Friday which hinted lower Free Cash Flow in FY15, which may affect dividend payout. Share price has since broken down from two strong support levels at RM6.83 and RM6.67. This was followed by a jump in trading volume while all the SMAs are trending downwards. Meanwhile, readings from the indicators showed that shortterm weakness is developing. We expect share price to continue its downtrend and we advise traders to remain cautious until the confirmation of a reversal signal. At this juncture, we expect the share price to retest the RM6.57 level while a strong support pegged at RM6.25.

 

Source: Kenanga