Friday, November 11, 2011

CIMB Research has technical sell on Bursa Malaysia

KUALA LUMPUR (Nov 11): CIMB Equities Research has a technical sell on Bursa Malaysia at RM6.59, at which it is trading at a FY12 price-to-earnings of 23.5 times and price-to-book value of 4.2 times.

It said on Friday Bursa's rebound has been in a jagged manner and is now testing the underside of the base channel resistance. The uptrend may continue a tad further as prices are still within the short term uptrend channel.

'A break below RM6.45 would likely confirm that the uptrend is over. We expect prices to test the moving averages at RM6.36 and RM6.00 next.

'With both its MACD and RSI flattening out, it may not be wise to chase this stock. Further rally should be viewed as a chance to sell with the overhead resistance at RM6.82 and RM7.00-RM7.05,' CIMB Research said.

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