KUALA LUMPUR (Nov 11): CIMB Equities Research has a technical sell on RHB Capital at RM7.34, at which it is trading at a FY12 price-to-earnings of 8.7 times and price-to-book value of 1.5 times.
It said on Friday the recent countertrend rebound has taken prices back up to its previous support turned resistance band. Its 50-day SMA is also standing in the way of the bulls.
“The resistance band at RM7.75-RM8.05 is likely to be tough to beat. Any rally into this range is a good chance to take profits. Longer term, we expect prices to fall back below the RM6.53 levels,” it said.
CIMB Research said in the near term, a break below RM7.03 would confirm that prices are heading to retest the RM6.53 low.
“With its indicators showing signs of exhaustion, the odds favour the bears. Put a buy stop at RM7.75,” it said.
It said on Friday the recent countertrend rebound has taken prices back up to its previous support turned resistance band. Its 50-day SMA is also standing in the way of the bulls.
“The resistance band at RM7.75-RM8.05 is likely to be tough to beat. Any rally into this range is a good chance to take profits. Longer term, we expect prices to fall back below the RM6.53 levels,” it said.
CIMB Research said in the near term, a break below RM7.03 would confirm that prices are heading to retest the RM6.53 low.
“With its indicators showing signs of exhaustion, the odds favour the bears. Put a buy stop at RM7.75,” it said.
