KUALA LUMPUR (March 29): CIMB Equities Research has a technical sell on Malayan Banking at RM8.83 at which it is trading at a FY13P/E of 11.5 times and price-to-book value of 2.0 times.
It said on Thursday that Maybank appears to be forming a large bearish wedge pattern. CIMB Research said prices are now testing the key RM8.80 resistance as this level was tested at least eight times over the course of two and a half years and failed to breakout every time.
“We think this time would not be any different as the indicators are not supportive of a breakout. A throwover towards RM9.00-RM9.10 cannot be ruled out but it is likely unsustainable.
“We think the stock is a sell on rallies with a stop placed above RM9.22. Anything below RM8.64 would suggest that the bears are in command and could send prices falling towards RM8.15 and RM7.75 next,” said CIMB Research.
It said on Thursday that Maybank appears to be forming a large bearish wedge pattern. CIMB Research said prices are now testing the key RM8.80 resistance as this level was tested at least eight times over the course of two and a half years and failed to breakout every time.
“We think this time would not be any different as the indicators are not supportive of a breakout. A throwover towards RM9.00-RM9.10 cannot be ruled out but it is likely unsustainable.
“We think the stock is a sell on rallies with a stop placed above RM9.22. Anything below RM8.64 would suggest that the bears are in command and could send prices falling towards RM8.15 and RM7.75 next,” said CIMB Research.
