Thursday, September 15, 2011

CIMB Research has technical sell on Public Bank

KUALA LUMPUR: CIMB Equities Research has a technical sell on PUBLIC BANK BHD [] at RM12.84 at which it is trading at a FY12 price-to-earnings of 11 times and price to book value of 3.3 times.

It said on Thursday, Sept 15 the recent rebound from the August lows has taken prices back up to almost its 62%FR levels before prices took a tumble again. The stiff resistance and the large gap kept the bulls at bay.

'Technical landscape is still weak as its MACD is turning down again while its RSI remained below the 50-pts neutral mark,' it said.

CIMB Research'' said traders should go short here with a stop placed above RM13.28.

It expected'' prices to take out the recent low RM12.52 in the short term. A break below this low is likely to take prices towards RM11.80-RM12.05 levels in the short to medium term, it said.

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