KUALA LUMPUR (Oct 31): CIMB Equities Research has a technical sell on Faber Group at RM1.78 at price-to-book value of 1.4 times.
It said on Monday, that since it featured Faber as a technical buy stock on Oct 12, prices rallied to a high of RM1.91 before consolidation took place.
“The run-up stopped near the 61.8% FR level. Friday’s bearish Marubozu pattern also indicates that the stock may have peaked in the immediate term.
“Indicators are showing signs of exhaustion. MACD histogram bars are losing pace while RSI has also hooked downward,” it said.
CIMB Research said sellers at the 200-day SMA need to be respected. Any rebound towards RM1.82-1.91 is an opportunity to take profit. Put a buy stop at RM1.95.
It said on Monday, that since it featured Faber as a technical buy stock on Oct 12, prices rallied to a high of RM1.91 before consolidation took place.
“The run-up stopped near the 61.8% FR level. Friday’s bearish Marubozu pattern also indicates that the stock may have peaked in the immediate term.
“Indicators are showing signs of exhaustion. MACD histogram bars are losing pace while RSI has also hooked downward,” it said.
CIMB Research said sellers at the 200-day SMA need to be respected. Any rebound towards RM1.82-1.91 is an opportunity to take profit. Put a buy stop at RM1.95.
