Monday, August 29, 2011

CIMB Research has Sell on DRB-Hicom at RM2.01

KUALA LUMPUR: CIMB Research has a technical Sell call on DRB-Hicom Holdings Bhd at RM2.10, at which it is trading at a price-to-book value of 0.9 times.

The research house said on Monday, Aug 29 DRB-Hicom was 'hanging by a thread'. It added that the prices violated its 200-day SMA last week and this may be the beginning of the next downleg.

'If the support trend line also fails to hold (now at RM1.98), expect selling pressure to accelerate and this would push prices lower towards RM1.85 and RM1.69 next,' it said.

CIMB Research said the technical landscape remained weak, adding that the MACD was hovering in the negative territory while RSI was near the oversold territory.

'Aggressive traders may want to lock in gains now while others should wait for a break below RM1.98 before going short. Only a rise above RM2.14 would prompt us to review our call,' it said.

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