KUALA LUMPUR: CIMB Equities Research has a technical sell on Kuala Lumpur Kepong at RM19.56 at which it is trading at a FY12 price-to-earnings of 14.9 times and price-to-book value of 3.1 times.
The research house said on Tuesday, Sept 27 the uptrend from its May 2010 low is likely over. On Monday, prices broke below the neckline support of the double top pattern.
'If we are right, the next downleg could be sharp, probably pushing prices lower towards RM18.40 and RM17.70,' it said.
CIMB Research cautioned that the technical landscape is deteriorating. MACD histogram bars are falling deeper into the dungeon while RSI is also below the 30pts mark.
'Our strategy here is to stick with the bear's camp. Even if there is a rebound, we think it would likely be a dead cat bounce. Prices need to overcome yesterday's high of RM20.36 before we would re-evaluate our call,' it said.
The research house said on Tuesday, Sept 27 the uptrend from its May 2010 low is likely over. On Monday, prices broke below the neckline support of the double top pattern.
'If we are right, the next downleg could be sharp, probably pushing prices lower towards RM18.40 and RM17.70,' it said.
CIMB Research cautioned that the technical landscape is deteriorating. MACD histogram bars are falling deeper into the dungeon while RSI is also below the 30pts mark.
'Our strategy here is to stick with the bear's camp. Even if there is a rebound, we think it would likely be a dead cat bounce. Prices need to overcome yesterday's high of RM20.36 before we would re-evaluate our call,' it said.
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