KUALA LUMPUR: CIMB Equities Research has a Technical Sell on SUPERMAX CORPORATION BHD [] at RM2.97, at which it is trading ata FY12 price-to-earnings of 8.0 times and price-to-book value of 1.4 times.
The research house said on Wednesday, Aug 24 that it appears the recent base building effort has failed. Prices broke below its triangle support, and this could entice greater selling pressure in days to come, if not weeks.
'Looking at the chart, we think it is too early for traders to go for a quick scalp, not until a more established base is formed.
'Technical landscape is still weak. MACD signal line is falling deeper into the dungeon while RSI has also hooked downward. Another black candle would likely dragged prices towards RM2.85 and RM2.70 next,' it said.
CIMB Research said its strategy here would be to unload on strength, especially near the RM3.11 to RM3.18 resistances. Put a buy stop at RM3.20, just in case.
The research house said on Wednesday, Aug 24 that it appears the recent base building effort has failed. Prices broke below its triangle support, and this could entice greater selling pressure in days to come, if not weeks.
'Looking at the chart, we think it is too early for traders to go for a quick scalp, not until a more established base is formed.
'Technical landscape is still weak. MACD signal line is falling deeper into the dungeon while RSI has also hooked downward. Another black candle would likely dragged prices towards RM2.85 and RM2.70 next,' it said.
CIMB Research said its strategy here would be to unload on strength, especially near the RM3.11 to RM3.18 resistances. Put a buy stop at RM3.20, just in case.
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