KUALA LUMPUR: CIMB Equities Research has a technical sell call on'' ALLIANCE FINANCIAL GROUP BHD [] (AGF) at RM3.20 at which it is trading at a FY12 price-to-earnings of 10.3 times and price-to-book value of 1.4 times.
It said on Thursday, Sept 29 that AFG's recent sharp fall from the RM3.80 high has taken prices below its
long term uptrend support line from the March 2009 lows. This breakdown also took prices below its 200-day SMA, which is another negative.
'The odds remain in favour the bears as both its indicators are at bearish levels. With no bullish divergence in sight, any rebound should be viewed as a chance to sell,' it said.
CIMB Research said aggressive traders should sell into strength should any rebound occurs.
It said the resistance around the RM3.22 (200-day SMA) and RM3.38 (30-day SMA) levels are good levels to get short.
'We expect prices to retest at least the RM3.00 levels, where support is strong. A break below RM3.00 would be very bearish for the stock, with the next key support closer to RM2.60,' it said.
It said on Thursday, Sept 29 that AFG's recent sharp fall from the RM3.80 high has taken prices below its
long term uptrend support line from the March 2009 lows. This breakdown also took prices below its 200-day SMA, which is another negative.
'The odds remain in favour the bears as both its indicators are at bearish levels. With no bullish divergence in sight, any rebound should be viewed as a chance to sell,' it said.
CIMB Research said aggressive traders should sell into strength should any rebound occurs.
It said the resistance around the RM3.22 (200-day SMA) and RM3.38 (30-day SMA) levels are good levels to get short.
'We expect prices to retest at least the RM3.00 levels, where support is strong. A break below RM3.00 would be very bearish for the stock, with the next key support closer to RM2.60,' it said.
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