Friday, October 21, 2011

CIMB Research has technical sell on Media Prima

KUALA LUMPUR: CIMB Equities Research has a technical sell on Media Prima at RM2.37 at which it is trading at a FY12 price-to-earnings of 11.3 times and price-to-book value of 1.8 times.

It said on Friday, Oct 21 the recent rebound may have exhausted. Prices hit the 50% FR level and the bears have since re-surfaced.

It added that even if a stronger rebound were to take place, gains will likely cap at the 50-day and 200-day SMAs, at RM2.50 and RM2.62 respectively.

'Our strategy here is to unload on strength, especially near the stipulated resistance levels. On the downside, once the RM2.31 low is infringed, expect the next downleg to drag prices towards RM2.18 and RM2.00,' it said.

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

No comments:

Post a Comment