Wednesday, September 28, 2011

CIMB Research has technical sell call on Rimbunan Sawit

KUALA LUMPUR: CIMB Equities Research has a technical sell call on Rimbunan Sawit at 99 sen at which it is trading at a price-to-book value of 0.9 times.

It said on Wednesday, Sept 28 that Rimbunan Sawit broke below its flag channel on Tuesday. This could induce greater selling pressure in days to come. If prices fail to bounce back above the support-turned-resistance trend line (now at RM1.04) soon, expect next downleg to drag prices towards 92 sen and 87 sen.

'Technical landscape is deteriorating. MACD has staged a dead cross while RSI has hooked downward. Also, the candles are hovering below all its key moving averages.

'As near term gains are likely capped at RM1.03-RM1.05, selling into strength looks like a good option here. Only a rise above RM1.09 would prompt us to re-evaluate our call,' it said.

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