KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Perdana Petroleum at 81 sen at which it is trading at a FY12 price-to-earnings of 10.4 times and price-to-book value of 0.8 times.
It said on Monday, July 18 Perdana Petroleum violated the triangle support few days ago and this is a worrying sign.
'The bears flexed its muscles and it appears that prices could fall back towards its previous low of 73.5 sen again,' it said.
CIMB Research said with the candles trading below all its key moving averages, it doubts any rebound would be sustainable.
'The bulls would also be undermined by the easing technical indicators. MACD has slipped into the negative territory while RSI is also skidding.
'Sell into strength looks like a good option here, especially near the 82 sen to 86 sen resistances. Prices need to take out its 200-day to negate this negative mode. Meanwhile, support is at 73.5 sen and 70 sen,' it said.
It said on Monday, July 18 Perdana Petroleum violated the triangle support few days ago and this is a worrying sign.
'The bears flexed its muscles and it appears that prices could fall back towards its previous low of 73.5 sen again,' it said.
CIMB Research said with the candles trading below all its key moving averages, it doubts any rebound would be sustainable.
'The bulls would also be undermined by the easing technical indicators. MACD has slipped into the negative territory while RSI is also skidding.
'Sell into strength looks like a good option here, especially near the 82 sen to 86 sen resistances. Prices need to take out its 200-day to negate this negative mode. Meanwhile, support is at 73.5 sen and 70 sen,' it said.
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