Monday, October 10, 2011

CIMB Research has technical sell on Gamuda

KUALA LUMPUR: CIMB Equities Research has a technical sell on GAMUDA BHD []'' at RM3.02 at which it is trading at a FY12 price-to-earnings of 12.6 times and price-to-book value of 1.7 times.

It said on Monday, Oct 10 the rebound from its RM2.63 low may have exhausted. Prices hit the resistance trend line on Friday but the bears prevented the candles from swinging past this level. 'Coincidently, the downward slopping resistance trend line is also around the 38.2% FR level,' it said.

CIMB Research said the MACD signal line is still rising but RSI has hooked downward. Immediate resistance is at RM3.12.

'If prices fail to edge above its 50-day SMA over the next few days, traders should consider taking profit. Alternatively, be quick to lock in profits if the 30-day SMA at RM2.92 is violated. The next support levels are RM2.80 and RM2.63,' it said.

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