Monday, August 9, 2010

CIMB Research: Sell Suria Capital into strength

KUALA LUMPUR: CIMB Retail Research says traders should use any rebound in Suria Capital Holdings to sell it into strength as it expects a correction to kick in soon.

'However, always put a buy stop at RM1.75 in case the rebound from May's low is stronger-than-expected,' it said in a research note issued on Monday, Aug 9. Suria was trading ara FY11P/E of 7.6 times and P/BV of 0.7 times.

Suria rallied to a new 52-week high of RM1.73 after breaking out of its downtrend channel. The run-up was steep but we are worried about its sustainability.

'Looking at the chart, it appears that a double top formation could also be in the making. A fall below RM1.60 would spark a new wave of selling, which could possibly drag prices towards RM1.50 and RM1.36 next,' it said.

CIMB Retail Research said indicators are showing some easing trend, suggesting that buying momentum has faded. MACD histogram bars are beginning to lose strength while its RSI has also hooked downward.


No comments:

Post a Comment