Wednesday, November 2, 2011

CIMB Research has technical sell on Takaso Resources

KUALA LUMPUR (Nov 2): CIMB Equities Research has a technical sell on Takaso Resources at 17 sen at which it is trading at a price-to-book value of 1.0 times.

It said on Wednesday Takaso appears to be forming a bearish flag pattern and could soon complete this pattern.

'Once completed, prices are more likely to fall once more towards the 11.5 sen low again. A break below 15.5 sen would likely increase the selling pressure on the stock,' it said.

CIMB Research said both indicators look to be reversing after testing their respective resistances.

'Avoid buying now. Any rebound should be used as a chance to sell into higher prices. A breakout above 23.5 sen may postpone the fall for a couple of months,' it said.

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