Wednesday, 7 March 2012

CIMB Research has technical sell on RHB Capital at RM7.72

KUALA LUMPUR (March 7): CIMB Equities Research has a technical sell on RHB Capital at RM7.72 at which it is trading at a FY13 price-to-earnings of 5.6 times and price-to-book value of 1.3 times.

It said on Wednesday the countertrend rebound reached the 38.2% Fibonacci Retracement level, suggesting that the uptrend from its October 2011 low may have exhausted. Coincidently, the 38.2% FR level is also close to the 200-day SMA.

“Unless the candles push above the 200-day SMA (now at RM8.04), we anticipate selling pressure to pick up in days to come. The next downleg will drag prices towards RM7.35 and RM6.92.

“MACD signal line is poised for a negative crossover while RSI has also hooked downward. This shows that buying momentum is waning,” it said.

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