CIMB Research: Sell into strength Green Packet

CIMB Retail Research says investors should sell Green Packet into strength especially when prices inch closer to the stipulated resistances.

It said on Tuesday, June 29 Green Packet hit a low of RM0.82 in May before bouncing strongly from thereon.

“Currently, it is gyrating below the 38.2% Fibonacci Retracement level (FR),” it said, adding that base don the charts, it appeared that the bulls will be sidelined for now as the candlesticks are still moving below the 200-day SMA.

CIMB Research said although it cannot rule out the possibility of further gains, it said upside was likely capped at this juncture. Resistance was seen at RM1.07-RM1.09, also its 200-day SMA and 38.2% FR.

“Sell into strength seems to be a good option here, especially when prices inch closer to the stipulated resistances. A fall below its 50-day SMA at RM0.96 would indicate that a deeper correction is underway,” it said. Its price to book value is 1.9 times.

Green Packet develops mobile Internet infrastructure. The company provides a range of software solutions for secure network access, WLAN-cellular integration, intelligent roaming, and instant community networks. Green

Packet serves carriers, enterprises, wireless Internet service providers, and device manufacturers through partnerships, pilots, and trials.


Written by CIMB Retail Research