Tuesday, December 13, 2011

CIMB Research has technical sell on CCM at RM1.62

KUALA LUMPUR (Dec 13): CIMB Equities Research has a technical sell on CHEMICAL COMPANY OF MALAYSIA [] at RM1.62 at which it is trading at a price-to-book value of 0.9 times.

It said on Tuesday the stock was in a sideways consolidation mode for the past few days. Prices hit its 50-day SMA before buyers re-surfaced.

'However, we think that this 50-day SMA support is weak as prices may still succumb to one more downleg, which could potentially drag prices towards RM1.54 and RM1.40,' it said.

CIMB Research said the indicators continued to show lacklustre trends. MACD histogram bars were hovering in the negative territory while RSI was below the 50 pts mark.

'Unless prices climb back above the RM1.71 level, we would rather stick with the bear's camp,' it said.

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