Friday, June 10, 2011

CIMB Research has Sell on Bolton at RM1

KUALA LUMPUR: CIMB Equities Research has a Sell call on Bolton at RM1 at which it is trading at a price-to-book value of 0.7 times.

The research house said on Friday, June 10 that Bolton violated its medium term support trend line few weeks ago.

Although prices have been consolidating sideways, CIMB Research said the longer term trend is still down. The candles were unable to swing back above its key moving averages, which is another negative sign.

'MACD is hovering in the negative territory while RSI is still dwindling. Near term gains would likely capped at RM1.05-1.10, its 30-day and 200 day SMAs respectively.

'Use any rebound towards the stipulated resistance zone to unload on strength. However, always put a buy stop at RM1.12, just in case. Support is seen at RM0.93-0.90 and RM0.825,' it said.

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