SMRT’s share price has been moving up since March, setting an all time high record of 74.5 sen. Despite its bullish run, SMRT has been slapped with an unusual market activity query by Bursa Malaysia recently. Yesterday, SMRT fall 3 sen (-4.55%) to close at RM0.63. Looking at the chart, SMRT is currently in a bearish reversal trend, with low volume indicating lack of investors’ interest on the stock. Key indicators like Stochastic and RSI are also descending from its overbought level, suggesting the share price could dip further to neutralize the overbought situation. Besides, the MACD indicator is also looking to stage a negative cross over soon, pointing to an uninspiring outlook ahead. Thus, we are placing a ‘Trading Sell’ call on the stock and believe that the price could correct further towards the RM0.50 level.

 

Source: Kenanga