KUALA LUMPUR (March 15): CIMB Equities Research has a technical sell on Mudajaya Group at RM3.20 at which it is trading at a FY13 price-to-earnings of 5.4 times and price-to-book value of 1.8 times.
It said on Thursday Mudajaya’s rebound has taken prices to its 62% Fibonacci Retracement levels.
“It is now testing the previous support turned resistance levels of RM3.23-RM3.31. It formed a shooting star pattern on strong volume, which is potentially a reversal signal,” it said.
CIMB Research said that as long as prices continue to hold below RM3.31 resistance levels, the stock was poised to fall with minor support seen at RM3.00 and RM2.79.
“Technical landscape suggests that the upward momentum is waning. For the longer term, a break below RM2.79 would suggest that the medium term outlook would turn bearish,” it said.
It said on Thursday Mudajaya’s rebound has taken prices to its 62% Fibonacci Retracement levels.
“It is now testing the previous support turned resistance levels of RM3.23-RM3.31. It formed a shooting star pattern on strong volume, which is potentially a reversal signal,” it said.
CIMB Research said that as long as prices continue to hold below RM3.31 resistance levels, the stock was poised to fall with minor support seen at RM3.00 and RM2.79.
“Technical landscape suggests that the upward momentum is waning. For the longer term, a break below RM2.79 would suggest that the medium term outlook would turn bearish,” it said.
