CIMB Research has Sell on Guocoland

KUALA LUMPUR: CIMB Equities Research has a Sell call on Guocoland Malaysia Bhd at 91 sen, at which it is trading at a price-to-book value of 0.8 times.

It said on Thursday, Aug 11 that prices broke below the wedge support recently. Wednesday’s black Marubozu pattern shows that the current downleg is not complete yet. With the candles

trading below all its key moving averages, the medium term outlook does not look promising as well.

“The deteriorating technical landscape does not bode well for the stock. MACD histogram bars are falling at a faster pace while RSI is below the 30pts mark,” it said.

CIMB Research said selling into strength looks like a good option here, especially near the RM1.00 level. The next downturn should drag prices towards 86 sen, 82.5 sen and 70 sen.

“Prices need to swing back above the support-turned-resistance trend line before we would review our call,” it said.