KUALA LUMPUR: CIMB Equities Research has a technical Sell call on MALAYAN FLOUR MILLS BHD [] at RM7.81 at which it is trading at a price-to-book value of 1.8 times.
The research house said on Tuesday, June 14 that MFM's prices violated the triangle support on Monday. If the bears continued to dominate, there is a good chance that the RM7.40-6.87 gap will be filled. The following support levels are RM6.68 and RM6.49.
'Indicators are showing signs of exhaustion. MACD is poised for a negative crossover while RSI has slipped below the overbought territory.
'Although we could not write off the possibility of a stronger rebound, we think near term gains are likely capped at RM8-RM8.50. Hence, unload on strength looks like a good option here,' it said.
The research house said on Tuesday, June 14 that MFM's prices violated the triangle support on Monday. If the bears continued to dominate, there is a good chance that the RM7.40-6.87 gap will be filled. The following support levels are RM6.68 and RM6.49.
'Indicators are showing signs of exhaustion. MACD is poised for a negative crossover while RSI has slipped below the overbought territory.
'Although we could not write off the possibility of a stronger rebound, we think near term gains are likely capped at RM8-RM8.50. Hence, unload on strength looks like a good option here,' it said.
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