COASTAL dropped 20 sen (-4.44%) yesterday to RM4.30 after two days of steep losses fueled by overall negative sentiment on the equities market. This was on the back of higher volume of net sellers. Chart-wise, the 20-day SMA has plunged below the 50-day and 100-day SMA, while the stock is trading well below all 3 SMAs. The MACD has crossed below the Signal Line, confirming the bearish downtrend. RSI and Stochastics are also bearish, trading at oversold levels, but Stochastics is showing a slight uptick, suggesting that the downward trend may be bottoming out. There is a strong support level at RM4.13 (S1). Should share price re-test this level, we believe it may be a good entry point for investors to buy on weakness.

 

 

Source: Kenanga