Friday, May 20, 2011

CIMB Research has Sell on Amcorp Properties at 63 sen

KUALA LUMPUR: CIMB Equities Research has a Sell on Amcorp PROPERTIES [] at 63 sen at which it is trading at a price-to-book value of 0.7 times.

It said on May 20 that the stock is trapped in a bearish wedge pattern. Although prices could still bounce higher from here, sustainability remains a key concern. The recent swing high of 69 sen would likely keep the bulls at bay for now.

'Technical indicators are showing signs of exhaustion. MACD has flattened out while RSI has also hooked downward. A break below the wedge support (now at 61 sen) would entice greater selling pressure.

'Use any rebound to sell into strength. Unless prices move up above the 70 sen level, the candles are likely to breach its wedge support to test the 58 sen and 52.5 sen levels,' it said.

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