KUALA LUMPUR: CIMB Retail Research has a Sell on Kimlun Corp Bhd at RM1.80 at which it is trading at a price-to-book value of 2.2 times.
It said on Tuesday, April 19 that after Kimlun's share price violated its wedge support in late February, Kimlun tried to recoup its lost ground.
'Although prices did surge to a new high of RM1.99 subsequently, sustainability remains a key issue here,' it said.
CIMB Research said prices have not been able to surpass the resistance trend line drawn from its October 2010 high to January 2011 high, suggesting that this is a level of significance.
'At this juncture, we think gains are likely capped at RM1.99-RM2.02. MACD has staged a dead cross, pushing its histogram bars into the negative territory while RSI has fallen a tad lower. Once the 50-day SMA at RM1.69 is violated, expect further selldown towards RM1.50 next,' it said.
It said on Tuesday, April 19 that after Kimlun's share price violated its wedge support in late February, Kimlun tried to recoup its lost ground.
'Although prices did surge to a new high of RM1.99 subsequently, sustainability remains a key issue here,' it said.
CIMB Research said prices have not been able to surpass the resistance trend line drawn from its October 2010 high to January 2011 high, suggesting that this is a level of significance.
'At this juncture, we think gains are likely capped at RM1.99-RM2.02. MACD has staged a dead cross, pushing its histogram bars into the negative territory while RSI has fallen a tad lower. Once the 50-day SMA at RM1.69 is violated, expect further selldown towards RM1.50 next,' it said.
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