Thursday, October 13, 2011

CIMB Research has technical sell on Bina Puri

KUALA LUMPUR: CIMB Equities Research has a technical sell call on Bina Puri Holdings at RM1.02 at which it is trading at a price-to-book value of 1.0 times.

It said on Thursday, Oct 13 the rebound from its 85 sen low reached the 38.2% Fibonacci Retracement level. Since then, sellers have re-emerged.

'Looking at the chart, we think that the bears at the 50-day SMA need to be respected. In the immediate term, we see greater downside risks. Yesterday, prices fail below the 30-day SMA, suggesting that it is heading back towards 96.5 sen and 92 sen,' it said.

CIMB Research said the indicators are showing signs of exhaustion. MACD histogram bars are losing pace while RSI has also turned flat. Put a buy stop at RM1.06, just in case.

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