KUALA LUMPUR (Feb 27): CIMB Equities Research has a technical sell on Hong Leong Bank at RM11.70 at FY13P/E of 11.3 times and price to book value of 2.2 times.
It said on Monday the rebound from its September low has taken prices back up to above its 62% Fibonacci retracement levels. Thursday’s bearish engulfing pattern could potentially be the top of this rebound rally.
“Coupled with the bearish divergence on both its MACD and RSI, there is a good chance that this rebound has ended. Even if there is still upside, it would likely be capped around RM12.00-12.30, where the latter is its 78.6% FR levels.
“The stock is a sell on further rallies with a buy stop placed above RM12.30. One should also sell if prices close below the uptrend channel support at RM11.10. The next possible stop would be RM10.22,” CIMB Research said.
It said on Monday the rebound from its September low has taken prices back up to above its 62% Fibonacci retracement levels. Thursday’s bearish engulfing pattern could potentially be the top of this rebound rally.
“Coupled with the bearish divergence on both its MACD and RSI, there is a good chance that this rebound has ended. Even if there is still upside, it would likely be capped around RM12.00-12.30, where the latter is its 78.6% FR levels.
“The stock is a sell on further rallies with a buy stop placed above RM12.30. One should also sell if prices close below the uptrend channel support at RM11.10. The next possible stop would be RM10.22,” CIMB Research said.
