KUALA LUMPUR (Feb 17): CIMB Equities Research has a technical sell on Petronas Chemicals Group at RM6.88 at which it is trading at a FY13P/E of 11.5 times and price-to-book value of 2.8 times.
It said on Friday that the uptrend channel from September 2011 low may have exhausted.
“If the candles fail to swing back above its recent high of RM7.03 soon, we expect selling pressure to intensify. The next support levels are RM6.55 and RM6.19,” it said.
CIMB Research said the MACD signal line is losing pace, suggesting that follow-through momentum is weakening. RSI has also hooked downward.
“Use any rebound towards RM6.91-7.03 to unload on strength. However, always put a buy stop at RM7.05 in case the uptrend is not over yet,” it said.
It said on Friday that the uptrend channel from September 2011 low may have exhausted.
“If the candles fail to swing back above its recent high of RM7.03 soon, we expect selling pressure to intensify. The next support levels are RM6.55 and RM6.19,” it said.
CIMB Research said the MACD signal line is losing pace, suggesting that follow-through momentum is weakening. RSI has also hooked downward.
“Use any rebound towards RM6.91-7.03 to unload on strength. However, always put a buy stop at RM7.05 in case the uptrend is not over yet,” it said.
