We previously placed a Trading Buy call on Westports with a TP of RM3.85 on speculation of a potential port tariff hike. However, the share price failed to perform according to our expectations with the chart confirming a bearish trend reversal. Key indicators are pointing towards a lacklustre outlook as the MACD is converging to form a bearish crossover. Meanwhile, both Stochastic and RSI indicators have trended south from overbought region, suggesting that selling pressure is picking up. All in, we reckon that the share price could consolidate further in the near-term. Therefore, we take this opportunity to close position on this stock as we deem our earlier technical view as nullified.

Source: Kenanga