Thursday, August 25, 2011

CIMB Research has Technical Sell on Padini

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Padini Holdings Bhd at 90.5 sen at which it is trading at a price-to-book value of 2.2 times.

The research house said on Thursday, Aug 25 that prices are now trading below its support trend line as well as its moving averages, suggesting that the trend is down.

It hit a new 52-week low on Wednesday on rising volume, which is another negative.

CIMB Research said Padinin's MACD is at a new 3-year low, which likely points to more selling pressure ahead. The RSI is slightly oversold but it still has room to manoeuvre lower.

'The stock is still a sell with a near term target of 86 sen. It could even tumble towards 82 sen or 77 sen. As long as prices do not cross above the key reisstance at RM1.07. Minor resistance at RM1.00-RM1.02,' it said.

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