Wednesday, September 28, 2011

CIMB Research has technical sell on United U-Li

KUALA LUMPUR: CIMB Equities Research has a technical sell call on United U-Li Corporation at 99 sen at which it is trading at a price-to-book value of 0.8 times.

It said on Wednesday, Sept 28 that since it featured United U-Li as a technical buy stock two days ago, prices surged more than 20% to hit a high of RM1.07 before closing at 99 sen on Tuesday.

CIMB Research said the sharp rise lifted prices towards the resistance channel and the bears have since re-surfaced.

'The rebound failed to push the candles above its 30-day SMA, suggesting that follow through momentum is waning. Hence, traders should consider taking profits now, especially near the RM1.03-RM1.07 resistances.

'Indicators remain compelling but we think that longer term trend is still down. Support is seen at 95 sen, 90.5 sen and 85 sen,' it said.

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