CIMB Research has Sell on Mitrajaya

KUALA LUMPUR: CIMB Equities Research has a technical Sell on MITRAJAYA HOLDINGS BHD [] at RM2.49, at which it is trading at a price-to-book of 1.0 times.

It said on Tuesday, June 28 that although Mitrajaya is still holding onto its upward trajectory, there are signs of possible deeper correction. Currently, prices are just sitting a tad above its 50-day SMA, which is also close to the wedge support line.

CIMB research said rhe bearish divergence in the MACD indicator suggests that selling climate is picking up. RSI is also below the 50pts mark.

“Although we could not completely write off the possibility of further upward swing, we think near term gains are likely capped at RM2.54-RM2.62.

“Hence, selling into strength looks like a good option here. Support is seen at RM2.37 and RM2.23. Put a buy stop at RM2.75, just in case,” it said.