KUALA LUMPUR (March 13): CIMB Equities Research has a technical sell on Carlsberg Brewery at RM10.50 at which it is trading at a FY13 price-to-earnings of 16.7 times and price-to-book value of 5.1 times.
It said on Tuesday that prices have been rising steadily since September. However, with the recent smaller candles, we see a slowdown in upward momentum.
“The bearish divergence on its MACD and RSI also calls for bulls to be extra cautious. The overbought RSI also supports the view that there is a good chance for the stock to retrace from here,” it said.
CIMB Research said it would be looking for a break below RM10.28 to confirm the reversal, which could send prices falling towards RM9.25 and RM8.43-8.55 next.
The research house said as long as the RM10.78 level is not breached. Otherwise, the rally could extend for a while longer before terminating.
It said on Tuesday that prices have been rising steadily since September. However, with the recent smaller candles, we see a slowdown in upward momentum.
“The bearish divergence on its MACD and RSI also calls for bulls to be extra cautious. The overbought RSI also supports the view that there is a good chance for the stock to retrace from here,” it said.
CIMB Research said it would be looking for a break below RM10.28 to confirm the reversal, which could send prices falling towards RM9.25 and RM8.43-8.55 next.
The research house said as long as the RM10.78 level is not breached. Otherwise, the rally could extend for a while longer before terminating.
