KUALA LUMPUR (Feb 28): CIMB Equities Research is maintaining its technical sell call on Masterskill Education Group Bhd (MEGB) at RM1.04 at which it is trading at a FY13 price-to-earnings of 6.9 times and price-to-book value of 0.8 times.
It said on Tuesday that since its Sell call on Feb 10, prices have now fallen below the RM1.08 support. The breakdown of its triangle last week suggests that the next leg of selling is already underway.
“There is no change in its technical outlook for the near term as the near term trend remains down. Both its indicators also support the bearish near term trend. Nevertheless, there is potential for a bullish divergence forming but we will write on these pages if the longer term trend has changed,” it said.
CIMB Research said for now, the stock remains a sell targeting 90 sen to 95 sen, where a cluster of Fibonacci targets lie. A break above the apex of the triangle at RM1.15 would likely suggest that the longer term trend is about to change.
It said on Tuesday that since its Sell call on Feb 10, prices have now fallen below the RM1.08 support. The breakdown of its triangle last week suggests that the next leg of selling is already underway.
“There is no change in its technical outlook for the near term as the near term trend remains down. Both its indicators also support the bearish near term trend. Nevertheless, there is potential for a bullish divergence forming but we will write on these pages if the longer term trend has changed,” it said.
CIMB Research said for now, the stock remains a sell targeting 90 sen to 95 sen, where a cluster of Fibonacci targets lie. A break above the apex of the triangle at RM1.15 would likely suggest that the longer term trend is about to change.
