KUALA LUMPUR (Feb 27): CIMB Research has technical sell on Aeon Co (M) at RM8 at which it is trading at a price-to-book value of 2.3 times.
It said on Monday the breakout run from the triangle pattern in December is likely at its tail-end as the rally seems to be losing momentum. Prices could still push higher into the RM8.10-8.40 levels in the near term but the upside is likely capped.
“Technical weakness is starting to set in, calling for a more cautious approach. The potential upside compared to the downside risk is not favourable,” it said.
CIMB Research said it prefered to be more cautious and take some money off the table now, adding that the uptrend could be over if prices fall below RM7.68 and the next downside target is RM6.80-RM7.00.
It said on Monday the breakout run from the triangle pattern in December is likely at its tail-end as the rally seems to be losing momentum. Prices could still push higher into the RM8.10-8.40 levels in the near term but the upside is likely capped.
“Technical weakness is starting to set in, calling for a more cautious approach. The potential upside compared to the downside risk is not favourable,” it said.
CIMB Research said it prefered to be more cautious and take some money off the table now, adding that the uptrend could be over if prices fall below RM7.68 and the next downside target is RM6.80-RM7.00.
