KUALA LUMPUR (Feb 9): CIMB Equities Research has a technical sell on KPJ Healthcare at RM5 at which it is trading at a price-to-book value of 3.4 times.
It said on Thursday that KPJ’s rally appears to be at its tail end as it completes the final fifth wave.
The final fifth wave should carry prices a tad higher as it remains within its uptrend channel. The upside from here is likely to be limited.
“However, the technical momentum is beginning to wane. Both its MACD and RSI sports bearish divergence signals, which calls for caution. We believe that traders may be better off taking some profits now and let the rest run. The next resistance is at RM5.15,” it said.
CIMB Research said traders should be quick to take profits if the RM4.88 support gives way as a break below the key support could send prices falling back towards RM4.33, its 200-day SMA,” it said.
It said on Thursday that KPJ’s rally appears to be at its tail end as it completes the final fifth wave.
The final fifth wave should carry prices a tad higher as it remains within its uptrend channel. The upside from here is likely to be limited.
“However, the technical momentum is beginning to wane. Both its MACD and RSI sports bearish divergence signals, which calls for caution. We believe that traders may be better off taking some profits now and let the rest run. The next resistance is at RM5.15,” it said.
CIMB Research said traders should be quick to take profits if the RM4.88 support gives way as a break below the key support could send prices falling back towards RM4.33, its 200-day SMA,” it said.
