KUALA LUMPUR (March 30): CIMB Equities Research has a technical sell on MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) at RM1.87 at which it is trading at a FY13 price-to-earnings of 23.4 times and price-to-book value of 1.9 times.
It said on Friday the stock’s rally from the September low ended when prices broke below the bearish wedge pattern in February. A couple of days ago, prices fell below its sideways trend, signalling another leg down was underway.
“Its MACD has reconfirmed its dead crossover and RSI is now on a downtrend once more.
“Any rebounds should be capped by the sideways band at RM1.94-RM2.03. Expect prices to fall further towards RM1.77 and RM1.64 next. Stop is above RM2.03,” it said.
It said on Friday the stock’s rally from the September low ended when prices broke below the bearish wedge pattern in February. A couple of days ago, prices fell below its sideways trend, signalling another leg down was underway.
“Its MACD has reconfirmed its dead crossover and RSI is now on a downtrend once more.
“Any rebounds should be capped by the sideways band at RM1.94-RM2.03. Expect prices to fall further towards RM1.77 and RM1.64 next. Stop is above RM2.03,” it said.
