KUALA LUMPUR (Nov 22): CIMB Equities Research has a technical sell on Sime Darby at RM8.80 at which it is trading at a FY13 price-to-earnings of 12.8 times and price-to-book value of 2.2 times.
It said on Tuesday the strong rebound from the RM7.64 September low has taken prices back up to retest the previous support turned resistance levels of RM8.90-RM9.05. The 200-day SMA is also standing in the way of the bulls.
“Technical landscape is starting to deteriorate. MACD just confirmed its dead crossover while its RSI also reversed after testing the 60-pts mark.
“We believe that prices are more likely to trend lower from here and hence investors may be better off taking profits now. Prices are likely to tumble to retest the RM7.64 low if the RM8.65 support gives way. The 50-day SMA at RM8.57 is a support but not a very strong one,” it said.
It said on Tuesday the strong rebound from the RM7.64 September low has taken prices back up to retest the previous support turned resistance levels of RM8.90-RM9.05. The 200-day SMA is also standing in the way of the bulls.
“Technical landscape is starting to deteriorate. MACD just confirmed its dead crossover while its RSI also reversed after testing the 60-pts mark.
“We believe that prices are more likely to trend lower from here and hence investors may be better off taking profits now. Prices are likely to tumble to retest the RM7.64 low if the RM8.65 support gives way. The 50-day SMA at RM8.57 is a support but not a very strong one,” it said.
