KUALA LUMPUR (March 26): CIMB Equities Research has a technical sell on Rimbunan Sawit at RM1.06 at which it is trading at a price-to-book value of 1.2 times.
It said on Monday Rimbunan Sawit violated its medium term uptrend channel few weeks ago. Since then, prices have been dwindling towards the 50-day SMA.
“Looking at the chart, the bears have been flexing their muscles after the candles slipped below its 30-day SMA,” it said.
CIMB Research said in the near term, it thinks the stock will challenge the 50-day SMA (now at RM1.05). Once this level is breached, the stock will likely de-rate towards 98.5 sen and 91.5 sen. The 200-day SMA is also a magnet for prices.
“Unload on strength looks like a good option here, especially near the RM1.11-RM1.15 resistances. Put a buy stop at RM1.17, just in case,” it said.
Rimbunan Sawit cultivates oil palms and process palm oil and it owns about 13,500ha of PLANTATION [] land and operates its palm oil mill.
It said on Monday Rimbunan Sawit violated its medium term uptrend channel few weeks ago. Since then, prices have been dwindling towards the 50-day SMA.
“Looking at the chart, the bears have been flexing their muscles after the candles slipped below its 30-day SMA,” it said.
CIMB Research said in the near term, it thinks the stock will challenge the 50-day SMA (now at RM1.05). Once this level is breached, the stock will likely de-rate towards 98.5 sen and 91.5 sen. The 200-day SMA is also a magnet for prices.
“Unload on strength looks like a good option here, especially near the RM1.11-RM1.15 resistances. Put a buy stop at RM1.17, just in case,” it said.
Rimbunan Sawit cultivates oil palms and process palm oil and it owns about 13,500ha of PLANTATION [] land and operates its palm oil mill.
