Monday, May 9, 2011

CIMB Research has Sell on Gamuda, RM3.63

KUALA LUMPUR: CIMB Equities Research has a Sell on GAMUDA BHD [] at RM3.63 at which it is trading at a FY price-to-earnings of 14 times and price-to-book value of 2.1 times.

It said on Monday, May 9 Gamuda appears to be forming a head and shoulders pattern. If this is the right count, then the correction from its RM4.26 high is not over yet.

'To confirm this bearish trend, prices need to fall below the neckline support at RM3.57. The following support levels are RM3.46 and RM3.12,' it said.

CIMB Research said indicators continue to remain subdued. MACD is falling deeper into the dungeon while RSI is also easing towards the oversold territory.

'Traders should do well selling into strength, as near term gains are likely capped at its key moving averages at RM3.72-RM3.80,' it said.

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