KUALA LUMPUR: CIMB Equities Research has a technical Sell call onKian Joo Can Factory at RM1.99 at which it is trading at a FY12 price-to-book value of 1.0 times.
It said on Monday, Aug 22 that Kian Joo broke below the flag support few weeks ago. Since then, trading has been lethargic. The pullback also took prices below its 30-day and 50-
day SMAs, another bearish sign.
'Although the candles are now holding above its 200-day SMA, we think it is only a matter of time before this level gives way. Selling pressure will accelerate once the RM1.93 level is breached. Next support levels are RM1.85 and RM1.76,' it said.
CIMB Research said prices need to swing back above RM2.08 before it reviews its call. At this juncture, gains are likely capped at RM2.06, its previous swing high.
It said on Monday, Aug 22 that Kian Joo broke below the flag support few weeks ago. Since then, trading has been lethargic. The pullback also took prices below its 30-day and 50-
day SMAs, another bearish sign.
'Although the candles are now holding above its 200-day SMA, we think it is only a matter of time before this level gives way. Selling pressure will accelerate once the RM1.93 level is breached. Next support levels are RM1.85 and RM1.76,' it said.
CIMB Research said prices need to swing back above RM2.08 before it reviews its call. At this juncture, gains are likely capped at RM2.06, its previous swing high.
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