KUALA LUMPUR (March 19): CIMB Equities Research has a technical sell on IOI Corporation at RM5.24 at which it is trading at a FY13 price-to-earnings of 15 times and price-to-book value of 2.8 times.
It said on Monday that IOI violated its wedge support last week and it said the stock was due for a correction.
“If we are right, the next downswing will likely push prices lower towards RM5.00 and RM4.84,” it said.
CIMB Research said as long as the candles stay below its key moving averages, the bears have the upper hand here. Indicators too point to more downside ahead, it added.
The research house said unloading on strength looks like a good option here. Only a rise above RM5.55 would prompt it to review its call.
It said on Monday that IOI violated its wedge support last week and it said the stock was due for a correction.
“If we are right, the next downswing will likely push prices lower towards RM5.00 and RM4.84,” it said.
CIMB Research said as long as the candles stay below its key moving averages, the bears have the upper hand here. Indicators too point to more downside ahead, it added.
The research house said unloading on strength looks like a good option here. Only a rise above RM5.55 would prompt it to review its call.
