SUNSURIA’s share price has been on the declining trend, and declined by 1sen yesterday after reacting negatively to news that the company will delay buying assets worth RM10b. Chart-wise, the SMA’s appear to be converging and heading towards a downtrend. All key indicators are also on the decline and within Oversold levels. Our Previous call was for the share price to push towards RM1.71 after breaking out of its channel resistance to confirm a “Bullish Flag” chart pattern. However our view failed to materialise upon the negative news flow yesterday. We expect share price to continue its downtrend towards RM1.15 after the RM1.37 support/ stop loss level has been triggered. We advise traders to remain cautious until the confirmation of a reversal signal.

 

Source: Kenanga