Tuesday, April 12, 2011

CIMB Research: DRB-Hicom under selling pressure

KUALA LUMPUR: CIMB Retail Research has a Sell on DRB-Hicom at RM2.27 after it violated its wedge support on Monday, April 11 on rising volume.

It said on Tuesday, April 12 that it seems that the selling pressure is picking up fast.

"If our count is right, prices should continue to correction over the next few days, possibly towards its 30-day and 50-day SMAs at RM2.09-RM2.06 range,' it said.

DRB-Hicom said technical landscape is showing signs of exhaustion. MACD is poised for a negative crossover while RSI has fallen out from its overbought territory.

'Use any rebound towards the RM2.50 highs to sell into strength. On the downside, support is seen at RM2.16, RM2.06 and RM1.93,' it said.

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