Thursday, September 22, 2011

CIMB Research has technical sell on ECM Libra

KUALA LUMPUR: CIMB Equities Research has a technical sell on ECM Libra Financial Group at 76.5 sen at which it is trading at a price-to-book value of 0.6 times.

It said on Thursday, Sept 22 that ECM violated its medium term support trend line early this week.

'We think there is still risk to the downside and investors should continue to stay on the sideline. The breakdown is a reflection of the bears' dominance,' it said.

CIMB Research said the technical landscape is weak. MACD signal line is falling deeper into the negative territory while RSI has also slipped below the 30pts mark. The following support levels are 72 sen and 64 sen.

'As long as prices stay below its 200-day SMA, any rebound is an opportunity to take profits. Put a buy stop at 83.5 sen, just in case,' it said.

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