Thursday, August 25, 2011

CIMB Research has Technical Sell on SEGi

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on SEG International at RM1.84 at which it is trading at a price-to-book value of 4.5 times.

The research house said on Thursday, Aug 25 that SEGI is now below its double top neckline at RM1.88. It appears to be forming a distribution band and not an accumulation band.

'With its dead cross of its 30-day SMA against its 50-day SMA, we think that selling pressure could pick up soon.

'Technical landscape remains mildly negative, which supports the sideways view. We believe that if prices were to take out the RM1.78 low, a deep selldown could take place,' it said.

CIMB Research said traders would be better off taking profits now or even going short here.'' It expected prices to weaken towards RM1.63, its 200-day SMA if the key support gives way. The following support is at RM1.54 and RM1.47.

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