KUALA LUMPUR (Feb 23): CIMB Equities Research has a technical sell on Rimbunan Sawit at RM1.16 at which it is trading at a price-to-book value of 1.0 times.
It said on Thursday that it is now the time to take profits following its earlier buy call.
CIMB Research said the stock formed a bearish engulfing pattern on Monday and prices have been drifting lower ever since. Prices could potentially nudge higher still but the upside could be capped at RM1.25.
“The bearish divergence on both the MACD and RSI signal that the uptrend is losing upward momentum. The overbought RSI also calls for bulls to be cautious,” it said.
CIMB Research said traders would be better off taking money off the table now. A break below RM1.07, the support trend line would confirm its suspicion that the uptrend is ending. A close below the support trend line would see prices decline further towards 86 sen next.
It said on Thursday that it is now the time to take profits following its earlier buy call.
CIMB Research said the stock formed a bearish engulfing pattern on Monday and prices have been drifting lower ever since. Prices could potentially nudge higher still but the upside could be capped at RM1.25.
“The bearish divergence on both the MACD and RSI signal that the uptrend is losing upward momentum. The overbought RSI also calls for bulls to be cautious,” it said.
CIMB Research said traders would be better off taking money off the table now. A break below RM1.07, the support trend line would confirm its suspicion that the uptrend is ending. A close below the support trend line would see prices decline further towards 86 sen next.
