Wednesday, May 11, 2011

CIMB Research has Sell on PJ Development at 75 sen

KUALA LUMPUR: CIMB Equities Research has a technical Sell call on PJ DEVELOPMENT HOLDINGS BHD [] at 75 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Wednesday, May 11 the recent countertrend rebound stopped near its 38.2% FR level. Since then, prices have fallen a tad lower. The pullback also dragged the candles below its key moving averages which is a bearish sign. Renewed selling pressure would set in once prices fall below its previous low of 72 sen.

'Technical landscape is deteriorating. MACD has slipped into the red, pushing its histogram bars into the negative territory. Its RSI is also dwindling towards the oversold region.

'Our strategy here is to unload on strength as gains are likely capped at 76 sen to 79 sen. Prices need to overcome the 80 sen level to negate the bearish mode. On the downside, support is at 67 sen and 63 sen,' it said.

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