KUALA LUMPUR (Feb 23): CIMB Equities Research has a technical sell on MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) at RM2.01 at which it is trading at a FY13 price-to-earnings of 21.1 times and price-to-book value of 2.1 times.
It said on Thursday that MRCB’s rally from the September low is most likely over following its breakdown of the bearish wedge pattern last week.
On Wednesday, prices fell sharply below its key moving averages. Its MACD has also fallen below zero while its RSI is below the neutral mark. Both indicators are trending lower in line with prices.
“Any rebounds should be capped by the trend line at RM2.18 while the moving averages around RM2.08-2.11 would also act as a resistance. As long as the RM2.27 high is intact, then prices are more likely to head lower to retest the RM1.87 level next,” said CIMB Research.
It said on Thursday that MRCB’s rally from the September low is most likely over following its breakdown of the bearish wedge pattern last week.
On Wednesday, prices fell sharply below its key moving averages. Its MACD has also fallen below zero while its RSI is below the neutral mark. Both indicators are trending lower in line with prices.
“Any rebounds should be capped by the trend line at RM2.18 while the moving averages around RM2.08-2.11 would also act as a resistance. As long as the RM2.27 high is intact, then prices are more likely to head lower to retest the RM1.87 level next,” said CIMB Research.
