Thursday, August 18, 2011

CIMB Research has Technical Sell on OSK Holdings

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on OSK HOLDINGS BHD [] at RM1.46 at which it is trading at a price-to-book value of 1.3 times.

In its technical outlook for the stock on Thursday, Aug 18, it said that despite the'' recent rebound, OSK is still trapped in a downtrend channel.

'As the candles are also trading below its key moving averages, we think any rebound would likely to be short-lived, possibly capped at RM1.50-RM1.53,' it said.

CIMB Research said the MACD is slowly rising but its signal line remains deep in the negative territory. RSI too is below the 50pts mark. Support is at RM1.36 and RM1.27.

'Unless prices can remain above its 50-day SMA, we think the odds still favour the bears. Hence, selling into strength looks like a good option here. Only a push above RM1.62 would prompt us to review our call,' it said.

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