Thursday, June 16, 2011

CIMB Research has Sell on United U-Li

KUALA LUMPUR: CIMB Equities Research has a technical Sell call on United U-Li Corporation at RM1.22, at which it is trading at a price-to-book value of 1.0 times.

It said on Thursday, June 16 that United U-Li surged to a new 52-week high of RM1.42 before selling pressure started to set in. The bears were rather rampant here as prices have fallen by about 14% over the past two days (from the RM1.42 level).

'Although MACD is still rising, traders should beware of the downside risk. A break below RM1.18 is negative as prices may then fill the RM1.18 to 98 sen breakaway gap.

'Aggressive traders may sell on strength, possibly near the RM1.29-RM1.33 resistances. Others may want to carry out sell orders when prices violate the RM1.18 level to avoid bear traps,' it said.

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