KUALA LUMPUR (Jan 20): CIMB Equities Research has a technical sell on TENAGA NASIONAL BHD [] at RM6.10 at which it is trading at a FY13 price-to-earnings of 13.6 times and price-to-book value of 1.1 times.
It said on Friday the rebound from its September low is running out of steam. Prices hit the 61.8% FR level and the bears have since intercepted.
“Looking at the chart, we think that the stock will likely undergo some correction in the near term.
“Indicators are showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has also fallen below the overbought zone,” it said.
CIMB Research advised investors to sell into strength which looked like a good option here, especially near the RM6.23-RM6.40 resistances. On the downside, support is at RM5.78 and RM5.44.
It said on Friday the rebound from its September low is running out of steam. Prices hit the 61.8% FR level and the bears have since intercepted.
“Looking at the chart, we think that the stock will likely undergo some correction in the near term.
“Indicators are showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has also fallen below the overbought zone,” it said.
CIMB Research advised investors to sell into strength which looked like a good option here, especially near the RM6.23-RM6.40 resistances. On the downside, support is at RM5.78 and RM5.44.
