KUALA LUMPUR (Jan 13): CIMB Equities Research has a technical sell on Malaysian Building Society (MBSB) at RM2.01 at which it is trading at a price-to-book value of 2.3 times.
It said on Friday that the stock appears to at the end of its bearish wedge pattern and a reversal is likely to take place soon.
“A bearish divergence is forming on its MACD while its RSI is now overbought. Both signals caution for the bulls,” it said.
CIMB Research said nevertheless, it still needs confirmation that a reversal is indeed taking place.
“A break below RM1.97 would increase the odds while closing below RM1.90 would confirm it. However, anything above RM2.10 would indicate that our view is incorrect and the bullish run is likely to continue,” it said.
It said on Friday that the stock appears to at the end of its bearish wedge pattern and a reversal is likely to take place soon.
“A bearish divergence is forming on its MACD while its RSI is now overbought. Both signals caution for the bulls,” it said.
CIMB Research said nevertheless, it still needs confirmation that a reversal is indeed taking place.
“A break below RM1.97 would increase the odds while closing below RM1.90 would confirm it. However, anything above RM2.10 would indicate that our view is incorrect and the bullish run is likely to continue,” it said.
