KUALA LUMPUR (Nov 24): CIMB Equities Research has a technical sell on IOI Corporation at RM4.92 at which it is trading at a FY13 price-to-earnings of 15.4 times and price-to-book value of 2.7 times.
The research house said on Thursday that despite the recent rebound, IOI failed to push above the 61.8% Fibonacci Retracement level. This shows that the bears are strong here.
Coincidently, the 200-day SMA (now at RM5.20) is just around the corner and this will put a lid on the bulls.
“Technical landscape is deteriorating. MACD signal line has staged a negative crossover while RSI is also below the 50 pts mark.
“Use any rebound to unload on strength as near term gains are likely capped at RM5.08-RM5.20. Once the 50-day SMA fails to hold, expect prices to fall towards RM4.66 and RM4.30. Put a buy stop at RM5.24, just in case,” it said.
The research house said on Thursday that despite the recent rebound, IOI failed to push above the 61.8% Fibonacci Retracement level. This shows that the bears are strong here.
Coincidently, the 200-day SMA (now at RM5.20) is just around the corner and this will put a lid on the bulls.
“Technical landscape is deteriorating. MACD signal line has staged a negative crossover while RSI is also below the 50 pts mark.
“Use any rebound to unload on strength as near term gains are likely capped at RM5.08-RM5.20. Once the 50-day SMA fails to hold, expect prices to fall towards RM4.66 and RM4.30. Put a buy stop at RM5.24, just in case,” it said.
