KUALA LUMPUR (March 21): CIMB Equities Research has a technical sell on Petronas Chemicals at RM6.71 at which it is trading at a FY13 price-to-earnings of 9.7 times and price-to-book of 2.7 times.
It said on Wednesday that Petronas Chemicals violated its uptrend channel few days ago.
“Currently, it is a tad below its 50-day SMA. If this candles fail to swing back above this key moving average soon, we expect next downleg to drag prices back towards RM6.38 and RM5.97. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the technical landscape remains weak. MACD signal line is falling towards the negative territory while RSI has also hooked downward.
“As long as the candles stay below its 30-day SMA, we think the odds continue to favour the bears. Prices are likely capped at RM6.79-RM6.85 in the near term. Put a buy stop at RM7.00, just in case,” it said.
It said on Wednesday that Petronas Chemicals violated its uptrend channel few days ago.
“Currently, it is a tad below its 50-day SMA. If this candles fail to swing back above this key moving average soon, we expect next downleg to drag prices back towards RM6.38 and RM5.97. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the technical landscape remains weak. MACD signal line is falling towards the negative territory while RSI has also hooked downward.
“As long as the candles stay below its 30-day SMA, we think the odds continue to favour the bears. Prices are likely capped at RM6.79-RM6.85 in the near term. Put a buy stop at RM7.00, just in case,” it said.
