Wednesday, September 7, 2011

CIMB Research has Technical Sell on Unisem

KUALA LUMPUR: CIMB Equities Research has a Technical Sell call on Unisem at RM1.23 at which it is trading at a FY12 price-to-earnings of 9.5 times and price-to-book value of 0.8 times.

It said on Wednesday, Sept 7 that the recent correction does not look complete. Although prices bounced off its low of RM1.19, the bulls failed to push prices above the 30-day SMA. This shows that buyers have yet to break the downtrend channel.

'However, to avoid bear traps, traders might want to wait for a crack below RM1.19 before going short. Once this level is violated, prices are likely to fall towards RM1.16 and RM1.10 next,' it said.

CIMB Research said the MACD is still hovering in the negative territory while RSI has hooked downward.

'The weak technical landscape reinforces our bearish stance on the stock. Put a buy stop at RM1.36, just in case,' it said.

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