KUALA LUMPUR (March 15): CIMB Equities Research has a technical sell on Hong Leong Bank at RM12.06 at which it is trading at a a FY13 price-to-earnings of 11.6 times and price-to-book value of 2.1 times.
It said on Thursday the rebound from its September 2011 low was strong as prices surpassed the 78.6% Fibonacci Retracement levels. However, this rally appears to be exhausted.
CIMB Research said if prices fail to swing back above its recent high of RM12.42, there is a high possibility that the bulls are running out of steam.
“Indicators are showing signs of weakness via the bearish divergence on its RSI. MACD signal line has confirmed its negative crossover while RSI has hooked down,” it said.
CIMB Research said the next downleg will likely drag prices towards RM11.60 and RM11.15. Selling pressure would accelerate if the candles fell below all its key moving averages, said the research house.
It said on Thursday the rebound from its September 2011 low was strong as prices surpassed the 78.6% Fibonacci Retracement levels. However, this rally appears to be exhausted.
CIMB Research said if prices fail to swing back above its recent high of RM12.42, there is a high possibility that the bulls are running out of steam.
“Indicators are showing signs of weakness via the bearish divergence on its RSI. MACD signal line has confirmed its negative crossover while RSI has hooked down,” it said.
CIMB Research said the next downleg will likely drag prices towards RM11.60 and RM11.15. Selling pressure would accelerate if the candles fell below all its key moving averages, said the research house.
