Friday, April 29, 2011

CIMB Research has SELL on Yee Lee Corp at RM1.08

KUALA LUMPUR: CIMB Equities Research has a SELL on Yee Lee Corporation at RM1.08 where it is trading at a price-to-book value of 0.8 times.

The research house said on Friday, April 29 Yee Lee is trapped in a bearish flag pattern. The recent countertrend rebound may have exhausted after prices hit the resistance channel.

'If we are right, prices should fall below its key moving averages soon before heading towards the support trend line of the flag pattern at RM0.90,' it said.

CIMB Research said technical landscape is showing signs of exhaustion. MACD histogram bars are falling at a fast pace while RSI is also dwindling.

It said traders should do well selling into strength, preferably near the RM1.12-RM1.17 resistances. Always put a buy stop at RM1.20, just in case.

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