KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Hong Leong Bank at RM9.98 at which it is trading at a FY12 price-to-earnings of 10.2 times and price-to-book value of 2.1 times.
It said on Friday, Sept 23 that the recent correction does not look complete. Prices violated its 200-day SMA on Thursday and this could induce greater selling pressure in days to come.
The next downleg should push prices closer towards RM9.50 and RM8.80.
'MACD is heading south while RSI is below the 30pts mark. The deteriorating technical landscape shows that the bears are still strong here.
'Our strategy here is to unload on strength, preferably near the 200-day SMA (now at RM10.62). Only a swing above RM10.96 would prompt us to reevaluate our call,' it said.
It said on Friday, Sept 23 that the recent correction does not look complete. Prices violated its 200-day SMA on Thursday and this could induce greater selling pressure in days to come.
The next downleg should push prices closer towards RM9.50 and RM8.80.
'MACD is heading south while RSI is below the 30pts mark. The deteriorating technical landscape shows that the bears are still strong here.
'Our strategy here is to unload on strength, preferably near the 200-day SMA (now at RM10.62). Only a swing above RM10.96 would prompt us to reevaluate our call,' it said.
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