Tat Hong (technical)

Tat Hong: the stock has been drifting down; share price peaked out after AIF Capital converted its convertible redeemable preference shares into 29.9m shares (4.8% of new share base) at $1 per share. The declining On Balance Volume (OBV), suggests some share distribution taking place. From a technical perspective, the break of the $1.40 support-turned-resistance bodes negatively. Watch for further breaks of the 50day MA ($1.355) and $1.30 classical support, to confirm the negative trend.