CIMB Research has Sell on Jaks Resources

KUALA LUMPUR: CIMB Equities Research has a technical Sell call on Jaks Resources Bhd at 67.5 sen at which it is trading at aprice-to-book value of 0.6 times.

It said on Wednesday, July 6 that the recent countertrend rebound may have exhausted. Prices hit the 200-day SMA and the bears have since intercepted.

“We think traders should do well selling into strength as the 50% FR level could also keep the bulls at bay,” it said.

CIMB Research said the indicators are showing signs of exhaustion. MACD histogram bars are losing strength while RSI has also hooked downward. The deteriorating technical landscape suggests that bears are making a comeback.

“As near term gains are likely capped at RM0.685-0.70, we see any rebound as an opportunity to reduce holdings. Meanwhile, support is at RM0.64 and RM0.60. Always put a buy stop at RM0.71, just in case,” it said.