Recall that on 3rd July 2014 we placed a ‘Trading Buy’ call on KAMDAR with a “Flagpole” measurement objective of RM1.04 on the expectation of potentially stronger sales backed by the coming Ramadan and Hari Raya festive season sales. However, this has failed to materialize with the share price hitting our cutloss level of RM0.70 yesterday. Technically speaking, the share price has broken down from its “Fibonacci” support level at RM0.739 following its inability to test the technical resistance level of RM0.85. Further bearishness is seen in the stock with MACD crossing over the Signal line with negative divergence. Momentum is also seen waning with RSI indicators hooking downwards. Thus, we suggest traders to cut loss at RM0.70 for now.

Source: Kenanga