Thursday, November 24, 2011

CIMB Research has technical sell on MRCB at RM1.90

KUALA LUMPUR (Nov 24): CIMB Equities Research has a technical sell on MALAYSIAN RESOURCES CORP []oration Bhd (MRCB)at RM1.90 at which it is trading at a FY13 price-to-earnings of 14.6 times and price-to-book value of 2.0 times.

The research house said on Thursday that the rebound from its September's low may have exhausted. Prices hit a snag near the 200-day SMA, suggesting that this is a level of significance.

'If we are right, the candles should fall below its 50-day SMA over the next few days before heading towards RM1.77 and RM1.59 next,' it said.

CIMB Research said the MACD histogram bars have slipped into the negative territory, suggesting that selling pressure is picking up. RSI is also below the 50pts mark.

'Aggressive traders may opt to lock in some profits now while others should consider switching into selling mode when prices fall below RM1.88 (its 50-day SMA). Only a swing above RM2.00 would prompt us to review our call,' it said.

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