Thursday, July 14, 2011

CIMB Research has technical Sell on Silver Ridge

KUALA LUMPUR: CIMB Equities Research has a technical Sell on'' Silver Ridge Holdings at 28.5 sen at which it is trading at a price-to-book value of 1.7 times.

It said on Thursday, July 14 the recent breakout run from its triangle consolidation may have ended following Tuesday's bearish harami pattern followed by an outside day on Wednesday.

Trading volume has also dwindled after the breakout, signaling that it is time to be cautious.

'Although MACD and RSI are rising but the potential of a bearish divergence on both is strong as well. The overbought RSI also do not augur well for the stock in the near term.

'The stock is a sell right now. Anything above 30 sen may suggest that our view is wrong. Prices are more likely to retest the triangle support at 22 sen to 23 sen in the near term,' it said.

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