KUALA LUMPUR (March 6): CIMB Equities Research has a technical sell on Parkson Holdings at RM5.59 at which it is trading at a price-to-book value of 2.3 times.
It said on Tuesday that Parkson has been gyrating in a huge ascending wedge pattern for the past few weeks but recent setback dragged prices below the support trend line. Currently, the stock is hovering just a tad above its 200-day SMA.
“The biggest concern now is the potential fall below the 200-day SMA. If this happens, we expect selling to be steep. Next downleg is likely to drag prices back towards the RM5.22 and RM5.00 levels,” it said.
CIMB Research said indicators remain weak. MACD signal line has slipped into the negative territory while RSI is below the 50pts mark. Put a buy stop at RM5.70, just in case,” it said.
It said on Tuesday that Parkson has been gyrating in a huge ascending wedge pattern for the past few weeks but recent setback dragged prices below the support trend line. Currently, the stock is hovering just a tad above its 200-day SMA.
“The biggest concern now is the potential fall below the 200-day SMA. If this happens, we expect selling to be steep. Next downleg is likely to drag prices back towards the RM5.22 and RM5.00 levels,” it said.
CIMB Research said indicators remain weak. MACD signal line has slipped into the negative territory while RSI is below the 50pts mark. Put a buy stop at RM5.70, just in case,” it said.
