Friday, 9 March 2012

CIMB Equities Research has technical sell on CBIP at RM2.43

KUALA LUMPUR (March 9): CIMB Equities Research has a technical sell on CB Industrial Product (CBIP) at RM2.43 at which it is trading at a price-to-book value of 1.9 times.

It said on Friday the stock violated its medium term uptrend channel as well as its 30-day SMA recently.

"We think that that the selldown is not over yet. Looking at the chart, we believe that the stock is heading towards its 50-day SMA (now at RM2.37) soon. The next support levels are RM2.30 and RM2.20,” it said.

CIMB Research said that indicators are showing signs of exhaustion. MACD signal line is heading south while RSI is below the 50pts mark.

“Sell into strength looks like a good option here, especially near the RM2.46-RM2.52 resistances. Put a buy stop at RM2.55, just in case,” it said.

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