STE

STE: CIMB has Technical Sell Call. Note that stock has been forming lower highs and lower lows since hitting a high of $3.50 in Nov10. The recent rebound has taken prices back up to its MA, which has been a decent resistance since that high.

Both indicators are also testing their respective resistance levels and hence there is a high chance of a reversal here. Aggressive traders should go short here with a stop placed above the downtrend resistance line at S$3.00. The gap at $2.93-3.01 could also act as a resistance in the near term. Expect prices to turn lower from here, likely to head back to retest the $2.64 low. Following support is at $2.55. Filling up the $2.83-2.84 gap would likely be the initial signal that prices are headed lower.