Wednesday, November 2, 2011

CIMB Research has technical sell on AMMB

KUALA LUMPUR (Nov 2): CIMB Equities Research has a technical sell on AMMB HOLDINGS BHD [] at RM5.94 at which it is trading at a FY 12 price-to-earnings of 11 times and price-to-book value of 1.7 times.

It said on Wednesday that prices broke below the key support trend line at RM6.00 in September to a low of RM5.30, but the current rebound has taken prices back up to retest this support turned resistance level. Failure to push past this resistance would signal that prices are ready to turn down once more.

'Both the indicators still in mildly positive mode but they are now heading into strong resistance levels themselves. So, it would be better to for the bulls to be prepared,' it said.

CIMB Research said the current rebound to retest RM6.00 should be viewed as a chance to sell. As long as prices remain below RM6.00, the short term odds favour the bears. RM5.00-RM5.08 is next target below the recent swing low. Otherwise, it could test the RM6.15-RM6.30 resistance next.

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