Monday, October 17, 2011

CIMB Research has technical sell on Kinsteel

KUALA LUMPUR: CIMB Equities Research has a technical sell on KINSTEEL BHD [] at 55 sen at which it is trading at a FY12 price-to-earnings of 15.9 times and price-to-book value of 0.7 times.

It said on Monday, Oct 17 the countertrend rebound from its 44.5 sen low may have exhausted.

CIMB Research said the sellers emerged near the 50-day SMA, which is also near its support-turned-resistance trend line. This shows that the bulls are not ready to recoup the lost ground.

'Although MACD signal line is still rising, we were taken a step back by the flattish RSI indicator. Unless prices swing back above the support-turned-resistance trend line (now at 58.5 sen), we would rather stay with the bear's camp. The next downleg is likely to drag prices towards 50 sen and 44.5 sen, it added.

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