Friday, June 17, 2011

CIMB Research has Sell on TRC Synergy

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on TRC Synergy at RM1.78 at which it is trading at price-to-book of 1.1 times.

It said on Friday, June 17 TRC violated the bearish wedge pattern on Thursday.

'We see this as a prelude to more downside ahead. If the 30-day and 50-day SMAs also give way, there is a good chance that prices may fill the RM1.70-1.62 gap soon. The following support levels are RM1.51 and RM1.43,' it said.

CIMB Research said the bearish divergence on its MACD suggests that follow through momentum has faded. RSI has also hooked downward.

'As the bears gain traction, we believe the best strategy here is to unload on strength. Near term gains are likely to be capped at RM1.81-1.87. Put a buy stop at RM1.90, just in case,' it said.

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