KUALA LUMPUR (Nov 22): CIMB Equities Research has a technical sell on Axiata Group at RM4.71 at which it is trading at a FY12 price-to-earnings of 13.9 times and price-to-book value of 2.1 times.
It said on Tuesday the rebound from its RM4.43 low reached the 61.8% FR of the July-August correction, suggesting that this upleg is probably may have found a short term top at RM5.
“Yesterday’s move lower took prices below its key moving averages. Indicators are showing signs of exhaustion with its MACD just confirming its dead crossover while the RSI has hooked lower.
“The stock remains a sell now with a buy stop placed above RM5.05. We expect prices to test the August low of RM4.38. The next support is at RM4.20-4.05. After that, there is no strong support until RM3.50,” it said.
It said on Tuesday the rebound from its RM4.43 low reached the 61.8% FR of the July-August correction, suggesting that this upleg is probably may have found a short term top at RM5.
“Yesterday’s move lower took prices below its key moving averages. Indicators are showing signs of exhaustion with its MACD just confirming its dead crossover while the RSI has hooked lower.
“The stock remains a sell now with a buy stop placed above RM5.05. We expect prices to test the August low of RM4.38. The next support is at RM4.20-4.05. After that, there is no strong support until RM3.50,” it said.
