KUALA LUMPUR (Feb 22): CIMB Equities Research has a technical sell on CB Industrial Product at RM5.13 at which it is trading at a price-to-book value of 2.0 times.
It said on Wednesday this stock is also on its uptrend but it believes that it is closer to its tail end rather than the start of a new rally.
“Prices are now approaching the middle band resistance of its uptrend channel, which has repelled prices twice before,” it said.
CIMB Research said both the MACD and RSI sports bearish divergence signals, suggesting that the bulls should be extra cautious.
The research house said the confirmation would come if prices take out the RM4.90 support. This breakdown would send prices falling fast towards RM4.22-4.30 next.
“Resistance is around the RM5.20 mark. Sell on further rallies or a break below RM4.90,” it said.
It said on Wednesday this stock is also on its uptrend but it believes that it is closer to its tail end rather than the start of a new rally.
“Prices are now approaching the middle band resistance of its uptrend channel, which has repelled prices twice before,” it said.
CIMB Research said both the MACD and RSI sports bearish divergence signals, suggesting that the bulls should be extra cautious.
The research house said the confirmation would come if prices take out the RM4.90 support. This breakdown would send prices falling fast towards RM4.22-4.30 next.
“Resistance is around the RM5.20 mark. Sell on further rallies or a break below RM4.90,” it said.
