KUALA LUMPUR (Feb 15): CIMB Equities Research has a technical sell on MMC Corporation at RM2.90 at which it is trading at a price-to-book value of 1.3 times.
It said on Wednesday that MMC Corporation is hovering in an uptrend channel but it thinks the stock is likely to take a breather soon.
“Yesterday’s sharp pullback shows that sellers are gaining pace fast. If the wedge support is breached, expect next downleg to be sharp, possibly pushing prices towards RM2.70 and RM2.54,” it said.
CIMB Research said the indicators are showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has also hooked downward.
“Use any rebound towards RM3.00-RM3.06 to unload on strength. Unless prices swing past the RM3.10 level, we would rather stick with the bear’s camp,” it said.
It said on Wednesday that MMC Corporation is hovering in an uptrend channel but it thinks the stock is likely to take a breather soon.
“Yesterday’s sharp pullback shows that sellers are gaining pace fast. If the wedge support is breached, expect next downleg to be sharp, possibly pushing prices towards RM2.70 and RM2.54,” it said.
CIMB Research said the indicators are showing signs of exhaustion. MACD signal line is poised for a negative crossover while RSI has also hooked downward.
“Use any rebound towards RM3.00-RM3.06 to unload on strength. Unless prices swing past the RM3.10 level, we would rather stick with the bear’s camp,” it said.
