Monday, October 24, 2011

CIMB Research has technical sell on Malton

KUALA LUMPUR: CIMB Equities Research has a technical sell on Malton at 58 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Monday, Oct 24 the rebound from its 39 sen low may have exhausted.

'Prices went close to challenge the 61.8% FR level but the bears were strong here. As a result, the candles have fallen back below its 200-day SMA,' it said.

CIMB Research said if it is right, the stock is consolidating in a bearish flag pattern. This is usually a downtrend continuation pattern. Hence, any rebound towards 60 sen to 62 sen may be a good opportunity to take profit.

'Technical landscape is showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has hooked downward. Support is seen at 55 sen and 50.5 sen. Put a buy stop at 62.5 sen,' it said.

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