KUALA LUMPUR: CIMB Equities Research has a Technical Sell on KPJ Healthcare at RM4.40 at which it is trading at a price-to-book value of 3.1 times.
It said on Friday, Aug 26 that KPJ broke below its key support trend line in early August before the current rebound took prices back up to retest the underside of this line. Prices appear to have reversed after failing to break above this line.
CIMB Research said the stock looks weak, technically. Both its momentum indiactors are in sell mode and with its RSI not yet oversold, there is stiil room on the downside.
'It is possible that prices are going to fall back towards the RM4.10 lows again in the coming days if not weeks. The 200-day SMA would also be tested.
'Breaking below both of this support would mean that prices could be heading towards RM3.70-3.08 next. Anything above RM4.61 would trigger our stop,' it said.
It said on Friday, Aug 26 that KPJ broke below its key support trend line in early August before the current rebound took prices back up to retest the underside of this line. Prices appear to have reversed after failing to break above this line.
CIMB Research said the stock looks weak, technically. Both its momentum indiactors are in sell mode and with its RSI not yet oversold, there is stiil room on the downside.
'It is possible that prices are going to fall back towards the RM4.10 lows again in the coming days if not weeks. The 200-day SMA would also be tested.
'Breaking below both of this support would mean that prices could be heading towards RM3.70-3.08 next. Anything above RM4.61 would trigger our stop,' it said.
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