Wednesday, December 7, 2011

CIMB Research has technical sell on UEM Land at RM2.16

KUALA LUMPUR (Dec 7): CIMB Equities Research has a technical sell on UEM Land Holdings at RM2.16 at which it is trading at a FY13 price-to-earnings 23.5 times and price-to-book value of 2.0 times.

It said on Wednesday UEM Land has been gyrating in a diagonal triangle pattern for the past few weeks.

'Looking at the chart, it seems that the rebound from its September's low may have exhausted.

'Selling pressure should accelerate once the candles slip below its 30-day SMA, which is now at RM2.14. The next downleg will drag prices towards RM2.06 and RM1.91. Meanwhile, resistance is at RM2.22-RM2.30.Put a buy stop at RM2.38,' it said.

CIMB Research said the tndicators are showing signs of exhaustion. MACD histogram bars have slipped into the red while RSI has hooked downward.

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