Monday, September 19, 2011

CIMB Research has Technical Sell on Media Prima

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Media Prima at RM2.43 at which it is trading at a FY12 price-to-earnings of 11.6 times and price-to-book value of 1.8 times.

It said on Monday, Sept 19 Media Prima broke below its long term bullish channel as well as its 200-day SMA last week. This breakdown bodes ill for the stock in the medium to long term.

CIMB Research said the recent dead crossover of its 30-day SMA against its 50-day SMA is also negative for the medium term.

'Technical landscape looks gloomy as its MACD is at its lowest level in three years. Its RSI is not yet oversold, which means that there is still room on the downside from here.

'Investors should be wary that most technical signals are bearish on the stock. It may be wise to lock in profits now as prices could fall back towards RM2.20 next. The strong support is seen around the RM1.90-RM2.00 levels while resistance is at RM2.55,' it said.

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