KUALA LUMPUR: CIMB Retail Research has a Sell on HPI Resources at RM1.84, which pegs its price-to-earnings for FY11 at 5.6 times and price-to-book value of 0.7 times.
It said on Thursday, July 29 that Wednesday's pullback confirmed the bearish engulfing pattern formed on Tuesday. Next downleg would likely drag HPI towards its 38.2% FR at RM1.75, and possibly even the 50% Retracement level at RM1.68.
'Technical indicators are also showing signs of exhaustion. MACD is about to turn south while its histograms also show an easing trend. Meanwhile, RSI is diving towards the neutral zone,' it said.
CIMB Retail Research said it appears that the RM2 high would likely be its near term peak. Hence, any rebound towards this level is an opportunity to sell into strength. Only a break above RM2.02 would cancel out the negative momentum.
HPI Resources manufactures corrugated boards, carton boxes, and plastic film packaging products.
It said on Thursday, July 29 that Wednesday's pullback confirmed the bearish engulfing pattern formed on Tuesday. Next downleg would likely drag HPI towards its 38.2% FR at RM1.75, and possibly even the 50% Retracement level at RM1.68.
'Technical indicators are also showing signs of exhaustion. MACD is about to turn south while its histograms also show an easing trend. Meanwhile, RSI is diving towards the neutral zone,' it said.
CIMB Retail Research said it appears that the RM2 high would likely be its near term peak. Hence, any rebound towards this level is an opportunity to sell into strength. Only a break above RM2.02 would cancel out the negative momentum.
HPI Resources manufactures corrugated boards, carton boxes, and plastic film packaging products.
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