KUALA LUMPUR (Jan 17): CIMB Equities Research has a technical sell on Malaysia Marine and Heavy Engineering (MMHE) at RM5.46 at which it is trading at a FY13 price-to-earnings of 21.0 times and price-to-book value of 3.8 times.
It said on Tuesday that Malaysia Marine and Heavy Engineering violated its triangle support on Monday. This could induce greater selling pressure in days to come if the candles fail to swing back above the support-turned-resistance channel.
“Yesterday’s correction suggests that near term gains would likely be capped by its 30-day and 50-day SMAs, which are now at RM5.60 and RM5.72 respectively. Prices need to push above RM5.95 to negate this bearish view.
“Indicators remain lethargic. MACD signal line has staged a negative crossover while RSI is also below the 50pts mark. Sell into strength,” it said.
It said on Tuesday that Malaysia Marine and Heavy Engineering violated its triangle support on Monday. This could induce greater selling pressure in days to come if the candles fail to swing back above the support-turned-resistance channel.
“Yesterday’s correction suggests that near term gains would likely be capped by its 30-day and 50-day SMAs, which are now at RM5.60 and RM5.72 respectively. Prices need to push above RM5.95 to negate this bearish view.
“Indicators remain lethargic. MACD signal line has staged a negative crossover while RSI is also below the 50pts mark. Sell into strength,” it said.
