CIMB Research has technical sell on TDM, more downside

KUALA LUMPUR: CIMB Equities Research has a technical sell call on TDM BHD [] at RM2.69 at which it is trading at a price-to-book value of 0.8 times.

It said on Friday, Sept 30 that TDM violated the triangle support recently. This was not good news as it implies that there is still room to the downside.

"Once the RM2.63 level gives way, expect next downleg to drag prices towards RM2.45 and RM2.35," it said.

CIMB Research although intermittent rebound could take place, we believe these were likely dead cat bounces. Hence, unload on strength looks like a good option here, preferably near the RM2.75-2.84 resistances.

"We will only review our call if the candles move above the RM2.91 level. Technical landscape remains lethargic. MACD signal line is hovering in the negative territory while RSI is below the 50pts mark," it said.