SIME declined by 6 sen yesterday to RM9.47. The share price appears to be consolidating after reaching a strong resistance level of RM9.77. This is concurrent with a slight increase in trading volume over last week, indicating some strong selling pressure. Indicators-wise, all three key indicators are trending downwards, with Stochastics indicator appears to be charting into oversold territory. From here, we expect SIME to continue its downtrend until confirmation of a reversal signal. Should selling pressure persist, we expect the share price to retest the RM9.30 level, while a strong support is pegged at RM8.50.

 

Source: Kenanga