Monday, October 10, 2011

CIMB Research has technical sell on KPJ

KUALA LUMPUR: CIMB Equities Research has a technical sell call on KPJ Healthcare at RM4.13 at which it is trading at a price-to-book value of 2.9 times.

The research house said on Monday, Oct 10 the rebound from its RM3.76 low may have exhausted. Prices hit the 38.2% FR level and the bears have since re-surfaced.

'Looking at the chart, we believe that the 50-day SMA would also keep the bulls at bay. The 61.8% FR level at RM4.35 is another strong resistance level,' it said.

CIMB Research said sell into strength looks like a good option here, especially near the RM4.19-RM4.35 levels.

'We may only review our call when the candles swing above all its key moving averages. On the downside, a slip below RM4.05 would likely drag prices towards RM3.88 and RM3.76 next,' it said.

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