KUALA LUMPUR (Dec 16): CIMB Equities Research has a technical sell on Alam Maritim Resources at 72 sen at which it is trading at a FY13 price-to-earnings of 5.1 times and price-to-book value of 1.2 times.
It said on Friday the correction from its April high may not be over yet. Recent countertrend rebound hit a snag near the 84.5 sen level, suggesting that the bulls were running out of steam.
“If prices continue to trade below the support-turned-resistance trend line, expect next downleg to take prices lower towards 67 sen and 63.5 sen.
“Technical landscape is weak. MACD signal line has slipped into the red while RSI is below the 50pts mark,” it said.
CIMB Research said traders should do well selling into strength. Unless prices could swing back above its key moving averages, it said the odds now favoured the bears.
It said on Friday the correction from its April high may not be over yet. Recent countertrend rebound hit a snag near the 84.5 sen level, suggesting that the bulls were running out of steam.
“If prices continue to trade below the support-turned-resistance trend line, expect next downleg to take prices lower towards 67 sen and 63.5 sen.
“Technical landscape is weak. MACD signal line has slipped into the red while RSI is below the 50pts mark,” it said.
CIMB Research said traders should do well selling into strength. Unless prices could swing back above its key moving averages, it said the odds now favoured the bears.
