KUALA LUMPUR (Feb 2): CIMB Equities Research has a technical sell on Bumi Armada at RM3.95 at which it is trading at a FY13 price-to-earnings of 15.2 times and price-to-book value of 1.2 times.
It said on Thursday that Bumi Armada violated its medium term downtrend channel recently and selling pressure has been slowly creeping up.
“If the candles still could not climb back above its key moving averages at RM4.04-RM4.08, we expect prices to de-rate towards RM3.72 and RM3.59,” it said.
CIMB Research said the MACD signal line has slipped into the negative territory while RSI is below the 50pts mark. The weak technical reading suggests that the bears have the upper hand here.
“Any rebound towards RM4.04-RM4.08 is an opportunity to sell into strength. Only a rise above RM4.15 would prompt us to review our bearish stance,” it said.
It said on Thursday that Bumi Armada violated its medium term downtrend channel recently and selling pressure has been slowly creeping up.
“If the candles still could not climb back above its key moving averages at RM4.04-RM4.08, we expect prices to de-rate towards RM3.72 and RM3.59,” it said.
CIMB Research said the MACD signal line has slipped into the negative territory while RSI is below the 50pts mark. The weak technical reading suggests that the bears have the upper hand here.
“Any rebound towards RM4.04-RM4.08 is an opportunity to sell into strength. Only a rise above RM4.15 would prompt us to review our bearish stance,” it said.
