KUALA LUMPUR (Dec 2): CIMB Equities Research has a technical sell on Tan Chong Motor Holdings at RM4.24 at which it is trading at a FY13 price-to-earnings of 8.2 times and price-to-book value of 1.5 times.
It said on Friday the recent countertrend rebound hit a snag near the 38.2% FR level. It appears that the stock is still trapped in a downtrend channel. With the candles also trading below all its key moving averages, we doubt any short term rebound would be strong.
“Unload on strength looks like a good option here, especially near the RM4.37 to RM4.40 resistances. Selling pressure should accelerate once the RM4.15 low is breached. Support is at RM4.00 and RM3.76.
“Technical landscape remains lethargic. MACD is still hovering in the negative territory while RSI is below the 50pts mark,” CIMB Research said.
It said on Friday the recent countertrend rebound hit a snag near the 38.2% FR level. It appears that the stock is still trapped in a downtrend channel. With the candles also trading below all its key moving averages, we doubt any short term rebound would be strong.
“Unload on strength looks like a good option here, especially near the RM4.37 to RM4.40 resistances. Selling pressure should accelerate once the RM4.15 low is breached. Support is at RM4.00 and RM3.76.
“Technical landscape remains lethargic. MACD is still hovering in the negative territory while RSI is below the 50pts mark,” CIMB Research said.
