Friday, August 12, 2011

CIMB Research has Technical Sell on Press Metal

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on PRESS METAL BHD [] at RM1.83 at which it is trading at a price-to-book value of 1.0 times.

It said on Friday, Aug 12 Press Metal tried to build a base around the RM1.74-RM1.92 levels after prices breached its triangle support.

'Looking at the chart, we think this is an uphill task. With the candles trading below its key moving averages, buying momentum could be weak in the near term,' it said.

CIMB Research said although it does not discount the possibility of a technical rebound, near term gains are likely capped at RM1.92-RM2. The latter being the 38.2% FR level.

'Hence, selling into strength looks like a good option here,' it said.

The research house said Press Metal's MACD is below the zero line while RSI is lingering below the 30pts mark.

Press Metal manufactures and markets aluminum products. It also operates environmental business including treating toxic waste, recycling waste while it also markets gypsum board.

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