KUALA LUMPUR: CIMB Equities Research has a Sell call on LATEXX PARTNERS BHD [] at RM2.29 at which it is trading at FY12 price-to-earnings of 8.5 times and price-to-book value of 2.5 times
The research house said on Wednesday, May 25 Latexx violated its triangle support few days ago. Since then, prices have been hovering below the support-turned-resistance trend line. This is likely a prelude to more downside ahead. If our count is right, prices would likely tumble towards RM2.11 and RM2.01 next.
'Sell into strength looks like a good option here as indicators still point to more room to the downside. MACD histogram bars have slipped into the red while RSI is below the 30-level.
'Use any rebound towards RM2.34-RM2.48 to sell into strength. Unless prices swing back above the RM2.50 level, the bears seem to have the upper hand here,' it said.
The research house said on Wednesday, May 25 Latexx violated its triangle support few days ago. Since then, prices have been hovering below the support-turned-resistance trend line. This is likely a prelude to more downside ahead. If our count is right, prices would likely tumble towards RM2.11 and RM2.01 next.
'Sell into strength looks like a good option here as indicators still point to more room to the downside. MACD histogram bars have slipped into the red while RSI is below the 30-level.
'Use any rebound towards RM2.34-RM2.48 to sell into strength. Unless prices swing back above the RM2.50 level, the bears seem to have the upper hand here,' it said.
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