Monday, August 22, 2011

CIMB Research has technical Sell on L&G

KUALA LUMPUR: CIMB Equities Research has a technical Sell call on Land & General Bhd (L&G) at 33.5 sen at which it is trading at a FY12 price-to-book value of 0.8 times.

It said on Monday, Aug 22 that after the share price violated the triangle support, prices hit a low of 31 sen before the bulls started to set in again.

'This correction, however, does not look complete yet. There is still a possibility that the candles may breach the 31 sen level again during its next downswing.

'Technical landscape is still weak, reinforcing our short term bearish view on the stock,' it said. CIMB Research said the MACD is hovering at the deep negative territory while RSI is below the 50pts mark. There is a minor support at 32.5 sen, followed by 31 sen and 28.5 sen next.

'Sell into strength looks like a good option here, especially near the 36 sen to 37 sen levels. Even if prices were to swing above this level, the moving averages will also keep the bulls at bay,' it said.

No comments:

Post a Comment