Friday, December 9, 2011

CIMB Research has technical sell on London Biscuits at 86.5 sen

KUALA LUMPUR (Dec 9): CIMB Equities Research has a technical sell on London Biscuits at 86.5 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Friday the previous day's sharp fall formed a bearish marubozu pattern and we are worried about its near term outlook.

'If the candles continue to stay below its 200-day SMA, there is a high possibility that prices may plunge towards 82 sen and 77.5 sen.

'As the fall was accompanied by high volume, we doubt prices can bounce back strongly any time soon. Hence, selling into strength looks like a good option here, especially near the 87.5 sen and 90.5 sen resistance levels,' it said.

CIMB Research said the technical landscape is deteriorating, pointing out that the MACD histogram bars are falling at a fast pace while RSI has also hooked downward.

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