Wednesday, July 28, 2010

CIMB Research: Unload TDM on strength

KUALA LUMPUR: CIMB Retail Research has advised investors to unload TDM BHD [] on strength. At the last traded price of RM2.22, it is trading at a price-to-book value of 0.8 times.

The research house said on Wednesday, July 28 the Evening Star formed on Monday is an early warning that the trend is about to reverse. If prices fall below Tuesday's low of RM2.19, expect more room to the downside with near term support seen at RM2.09.

'The bulls are looking exhausted at the moment. Both MACD and RSI have flattened out, suggesting that buying momentum has faded. If RM2.09 is violated, next downside targets are RM2.02 (also its 38.2% FR) and RM1.86, the 30-day SMA,' it said.

CIMB Research said its'' strategy here is to unload on strength. As it stated that it cannot completely write off the possibility of further rally, always put a buy stop at RM2.30.


No comments:

Post a Comment