Tuesday, October 25, 2011

CIMB Research has technical sell on KSL

KUALA LUMPUR: CIMB Equities Research has a technical sell on KSL Holdings at RM1.39 at which it is trading at a price-to-book value of 0.6 times.

It said on Tuesday, Oct 25 that the recent rebound was weak. Prices face strong resistance near the 23.6% FR level.

'Judging from this, we think the stock is not out of the woods yet. Once the 30-day SMA fails to hold, expect next downleg to drag prices towards RM1.31 and RM1.27 again,' it said.

CIMB Research said the indicators are showing signs of exhaustion. MACD histogram bars are rising at a slower pace while RSI has hooked downward.

'Any rebound towards RM1.40-1.45 is an opportunity to unload on strength. Even if these levels are taken out, sellers at the 50-day SMA will keep the bulls at bay. Only a rise above RM1.50 would prompt us to review our call,' it said.

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