KUALA LUMPUR (Nov 8): CIMB Research has a technical sell on Supermax Corp at RM3.62 at which it is trading at a FY12 price-to-earnings of 9.1 times and price-to-book value of 1.6 times.
It said on Tuesday the rebound has taken prices back up to retest the previous support turned resistance levels.
“At current levels, we believe that the upside is likely capped by its 200-day SMA and the downside risk is now higher compared to its potential ST return,” it said.
Technical landscape is starting to weaken with its MACD starting to rollover. Its RSI has also hooked lower from the overbought levels.
“Our strategy here is to unload on strength, especially near the RM3.80-RM4.00 resistances. Prices could soon pullback towards its uptrend support line RM3.28 and keen buyers should wait around those levels to accumulate. The key support remains at RM2.86,” it said.
It said on Tuesday the rebound has taken prices back up to retest the previous support turned resistance levels.
“At current levels, we believe that the upside is likely capped by its 200-day SMA and the downside risk is now higher compared to its potential ST return,” it said.
Technical landscape is starting to weaken with its MACD starting to rollover. Its RSI has also hooked lower from the overbought levels.
“Our strategy here is to unload on strength, especially near the RM3.80-RM4.00 resistances. Prices could soon pullback towards its uptrend support line RM3.28 and keen buyers should wait around those levels to accumulate. The key support remains at RM2.86,” it said.
