Friday, April 8, 2011

CIMB Research says MMHE rally may be at tail end

KUALA LUMPUR: CIMB Retail Research said Malaysia Marine & Heavy Engineering's share price is gyrating in a bearish wedge pattern.

'If our count is right, the rally from its Jan low is probably at its tail end. A fall below its 30-day SMA would confirm that the rally is over. Next supports are RM6.74 and RM6.50,' it said in its technical outlook for the share price on Friday, April 8.

CIMB Research said although prices could still bounce back, near term gains are likely capped at RM6.99-RM7.15. Hence, its strategy here is to unload on strength.

'Our short term negative view is supported by the easing technical readings. Bearish divergence was found in its MACD indicator while RSI too has hooked downward. However, put a buy stop at RM7.20,' it said.

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