Tuesday, 14 February 2012

CIMB Research has technical sell on JCY at RM1.35

KUALA LUMPUR (Feb 14): CIMB Equities Research has a technical sell on JCY International at RM1.35 at which it is trading at a FY13 price-to-earnings of 3.6 times and price-to-book value of 3.1 times.

It said on Tuesday that JCY’s rally from the 38.5 sen September low has been nothing but spectacular.

“However, we think that this rally is over and looks poised for a deep correction,” it said.

CIMB Research said the upward momentum is weakening via bearish divergence signals on both its MACD and RSI. The overbought RSI is also a warning sign for bulls.

“We believe that it is time to get out and lock in gains. Even if there is upside left, it is likely limited to RM1.50-1.60 levels. The key level to watch out for is RM1.31, where a break below would likely signal that prices are headed back to RM1.08 and RM1.03 next, where the latter is its 50-day SMA. Sell now,” it said.

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