Wednesday, September 7, 2011

CIMB Research has Technical Sell on Benalec

KUALA LUMPUR: CIMB Equities Research has a Technical Sell call on Benalec Holdings at RM1.23 at which it is trading at a price-to-book value of 2.6 times.

It said on Wednesday, Sept 7 that prices broke below its triangle support to hit a low of RM1.21 on Tuesday.

'We think there is still room to the downside and traders should avoid jumping in too early. If the RM1.21 low is violated again, prices could likely fall towards RM1.15 and RM1.05 next,' it said.

CIMB Research said the trend favours the bears in the short to medium term. MACD is falling deeper into the dungeon while RSI is easing towards the oversold zone.

'Continue to sell on strength. Near term gains are likely capped at RM1.29-RM1.31. However, put a buy stop at RM1.38, just in case,' it said.

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