Wednesday, November 9, 2011

CIMB Research has technical sell on Gamuda

KUALA LUMPUR (Nov 9): CIMB Equities Research has a technical sell on GAMUDA BHD [] at RM3.36 at which is it is trading at a FY 12 price-to-earnings of 14.0 times and price-to-book value of 1.9 times.

It said on Wednesday the current rebound from its RM2.63 low have taken prices back up towards its previous support now resistance levels. Tuesday's tweezer top pattern is also negative for the stock.

'MACD is beginning to flatten out while its RSI is now trending lower. Both suggests possible near term weakness. A close beneath the recent swing low of RM3.24 would likely confirm the reversal,' it said.

CIMB Research said selling near current levels would be a good idea. Any rebound towards RM3.45-RM3.55 is a bonus. Any close below RM3.24 levels would mean that the next support at RM3.03 and even RM2.80 could be tested.

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