Thursday, November 3, 2011

CIMB Research has technical sell on JCY

KUALA LUMPUR (Nov 3): CIMB Equities Research has a technical sell on JCY International at 60 sen at which it is trading at a FY12 price-to-earnings of 8.8 times and price-to-book value of 1.4 times.

It said on Thursday the recent sharp rebound has taken JCY back up towards its 200-day SMA and it appears to be finding some difficulty in breaching it. Two out of the last three candles had long upper shadow, probably suggesting that sellers are quite strong around those levels.

'Both indicators look to be flattening out and its RSI is also spoting a bearish divergence. A possible reversal perhaps?

'We believe that the upside from here is likely limited. Avoid buying now. Continue to sell on rebounds as we think that prices are likely to head back towards 53 senfirst and settle between 48 sen and 53 sen to form a strong base.

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