Tuesday, August 23, 2011

CIMB Research has Technical Sell on Paramount

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Paramount Corp Bhd at RM1.75, at which it is trading at a price-to-book value of 0.5 times.

It said on Tuesday, Aug 23 Paramount broke below its support trend line as well as its 200-day SMA recently, suggesting that the uptrend channel from its December 2010 low has exhausted. Although the bulls tried to fight back, sellers at the 200-day SMA proved a tad too strong.

'Technical landscape remains subdued. MACD is hovering in the negative territory while RSI has hooked downward,' it said.

CIMB Research said unless prices swing back above the RM1.91 level, the odds continue to favour the bears. Hence, our strategy is to unload on strength, preferably near the RM1.84-RM1.87 levels. On the downside, support is seen at RM1.62 and RM1.50,' it said.

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