Wednesday, October 5, 2011

CIMB Research has technical sell on MAA

KUALA LUMPUR: CIMB Equities Research has a technical sell call on MAA Holdings at 40 sen at which it is trading at a price-to-book value of 0.4 times.

The research house said on Wednesday, Oct 5'' MAA Holdings violated its long term support channel on Tuesday.

'Selling pressure is likely to accelerate in days to come, if not weeks. If we are right, the next downleg is going to be steep, probably pushing prices lower towards 38 sen, 35 sen and possibly even 30 sen,' it said.

CIMB Research said the technical landscape remains lethargic. MACD signal line is hovering in the negative territory while RSI has hooked downward. Sellers at the support-turned-resistance trend line are going to dominate for a while longer.

'Our strategy here is to unload on strength, especially near the 41 sen to 46 sen resistances,' it said.

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