SIME near critical support at RM7.47

SIME DARBY BHD [] extended its losses in late morning trade on Tuesday, July 6 as it resumes its downward trend to hit a year's low.

At 11.01am, it is down nine sen to RM7.49 with 1.82 million shares done. This is the lowest since June 20, 2009.

The FBM KLCI is down 3.12 points to 1,296.38. Turnover is RM164.58 million shares valued at RM178.26.

OSK Research said Sime Darby was now approaching a critical support at the RM7.47 level.
In its technical outlook for Sime, it said a break below the RM7.47 level is very likely to invite strong selling pressure.

"If this crucial support level is violated, the odds are high that it will retrace to the RM7.00 level, or even the RM6.53 level.

To the upside, immediate resistance lies at the RM7.77 level, followed by the RM8.00 level, and the RM8.20 level," it said.
OSK Research said both the near-term and mid-term technical outlooks of Sime Darby are now aligned with a bearish bias.



Written by Joseph Chin
The Edge Malaysia