Wednesday, September 21, 2011

CIMB Research has Technical Sell on BRDB

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on BANDAR RAYA DEVELOPMENTS BHD [] (BRDB) at RM2.24 at which it is trading at a price-to-book value of 0.6 times.

It said on Wednesday, Sept 21 that BRDB violated its triangle support on Tuesday. The pullback was sharp and the candles fell below its 30-day SMA.

'Looking at the chart, we think this downleg could persist a while longer. The following support level is at RM2.14, which is also its 50-day and 200- day SMAs. Once this level is breached, expect prices to fall towards RM2.05 and RM1.95 next. Put a buy stop at RM2.40, just in case,' it said.

CIMB Research said investors should use any rebound to sell into strength. The deteriorating technical landscape

reinforced its short term bearish stance. MACD histogram bars are falling deeper into the negative territory while RSI has hooked downward.

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