Friday, July 16, 2010

CIMB Research: Gamuda uptrend losing momentum

KUALA LUMPUR:GAMUDA BHD []'s uptrend from the breakout of its triangle appears to be losing steam, according to CIMB Equities Research in a technical outlook note issued on Friday, July 16.

The research house said with Wednesday's long legged doji candle and Thursday's partial confirmation, it said prices should pull back in the short term.

CIMB Equities Research said technical indicators are waning, with its MACD and RSI showing bearish divergence. A slip below the uptrend channel support at RM3.30 would confirm it.

"This pullback could potentially turn into a bearish reversal if prices fall below the 200-day SMA. For now, we expect prices to pull back towards RM3.00-RM3.04 if the RM3.14 support gives way as well," it said.

At RM3.31, Gamuda is trading at a FY11 price-to-earnings of 17.8 times and price-to-book value of 2.0 times.


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