KUALA LUMPUR: CIMB Retail Research is keeping IOI Corp as a Sell at the current price of RM5.50, where it is trading at FY12P/E of 15.3 times and price-to-book value of 3.2 times.
It said on Wednesday, April 13 IOI has been hovering in a bearish flag pattern since February. Recent correction dragged prices towards its support trend line, suggesting that the bears are gaining momentum fast.
'Yesterday, it also fell below the 200-day SMA, another bearish sign. If prices continue to stay below its 200-day SMA, there is a high possibility that the candles might breach its support trend line. This is also reflected by the waning technical landscape,' it said.
CIMB Research said the odds now favour the bears. Therefore, its strategy here is to unload on strength, preferably near the RM5.56-RM5.67, its key moving averages. On the downside, support is seen at RM5.40, RM5.20 and RM5.05.
It said on Wednesday, April 13 IOI has been hovering in a bearish flag pattern since February. Recent correction dragged prices towards its support trend line, suggesting that the bears are gaining momentum fast.
'Yesterday, it also fell below the 200-day SMA, another bearish sign. If prices continue to stay below its 200-day SMA, there is a high possibility that the candles might breach its support trend line. This is also reflected by the waning technical landscape,' it said.
CIMB Research said the odds now favour the bears. Therefore, its strategy here is to unload on strength, preferably near the RM5.56-RM5.67, its key moving averages. On the downside, support is seen at RM5.40, RM5.20 and RM5.05.
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