KUALA LUMPUR (Jan 26): CIMB Research has technical sell on Supermax Corp at RM2.195 at which it is trading at a FY13 price-to-earnings of 19.1 times and price-to-book value of 2.0 times.
It said on Thursday the rebound from its September 2011 low appears to have exhausted. Last Friday’s sharp pullback violated its short term uptrend channel and this could be seen as a prelude to more downside ahead, it added.
“If we are right, the candles are likely to fall towards RM2.00 and RM1.90 in the near term.
“Indicators are showing signs of exhaustion. MACD histogram bars are losing pace fast while RSI has also hooked downward. The overbought RSI which may have prompted the selloff is likely still intact,” it said.
CIMB Research said sell into strength looks like a good option here, especially near the RM2.30-RM2.40 resistances. Only a sharp rise above RM2.50 would prompt it to review its call on Supermax.
It said on Thursday the rebound from its September 2011 low appears to have exhausted. Last Friday’s sharp pullback violated its short term uptrend channel and this could be seen as a prelude to more downside ahead, it added.
“If we are right, the candles are likely to fall towards RM2.00 and RM1.90 in the near term.
“Indicators are showing signs of exhaustion. MACD histogram bars are losing pace fast while RSI has also hooked downward. The overbought RSI which may have prompted the selloff is likely still intact,” it said.
CIMB Research said sell into strength looks like a good option here, especially near the RM2.30-RM2.40 resistances. Only a sharp rise above RM2.50 would prompt it to review its call on Supermax.
