Tuesday, 14 February 2012

CIMB Research has technical sell on Genting Malaysia at RM3.89

KUALA LUMPUR (Feb 14): CIMB Equities Research has a technical sell on Genting Malaysia at RM3.89 at which it is trading at a FY13 price-to-earnings of 13.4 times and price-to-book value of 1.9 times.

It said on Tuesday that Genting Malaysia tested the resistance trend line for the fourth time in the past year and the half.

“The market thinks that this line is important and so are we. The sharp fall since the final test has been sharper than the rest, which is likely an early indication that price could reverse further,” it said.

CIMB Research said the MACD and RSI sports bearish divergence signals, which suggests that the bulls are getting tired. The recent gap at RM3.94-RM4.01 could potentially be a good level to lock in gains.

“Failure to fill up this gap would be detrimental to the stock.

“The key support at RM3.78 is likely to give way soon. A break below would see prices fall towards RM3.17 next,” it said.

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