KUALA LUMPUR (Feb 14): CIMB Equities Research has a technical sell on GENTING BHD [] at RM10.50 at which it is trading at a FY13 price-to-earnings of 11.2 times and price-to-book value of 2.3 times.
It said on Tuesday that Genting’s rally from September low found stiff resistance at RM11.20-RM11.30 levels, the downtrend resistance line from the January 2011 high.
However, it said prices have since retraced and have been falling on strong rising volume.
“The black candles may not fully form the three black crows’ pattern but it is still bearish. The indicators continued to fall to new 5-month lows, suggesting weakness ahead.
“Any rebound towards the 50-day SMA at RM10.80 levels is an opportunity to take profits. We will maintain our bearish stance unless prices can take out the RM11.26 levels. A break below Friday’s low RM10.22 would send prices reeling towards RM9.75 and even RM8.34 in the months to come,” CIMB Research said.
It said on Tuesday that Genting’s rally from September low found stiff resistance at RM11.20-RM11.30 levels, the downtrend resistance line from the January 2011 high.
However, it said prices have since retraced and have been falling on strong rising volume.
“The black candles may not fully form the three black crows’ pattern but it is still bearish. The indicators continued to fall to new 5-month lows, suggesting weakness ahead.
“Any rebound towards the 50-day SMA at RM10.80 levels is an opportunity to take profits. We will maintain our bearish stance unless prices can take out the RM11.26 levels. A break below Friday’s low RM10.22 would send prices reeling towards RM9.75 and even RM8.34 in the months to come,” CIMB Research said.
