KUALA LUMPUR (Jan 27): CIMB Equities Research has a technical sell on Public Bank at RM13.40 at which it is trading at a FY13 price-to-earnings of 10.3 times and price-to-book value of 3.4 times.
It said on Friday that Public Bank appears to be close to completing its 5-wave move from the September low.
CIMB Research said the stock should be ripe for a reversal soon as it is now testing the middle band resistance of its ST uptrend channel.
“The technical landscape is still positive but the MACD and RSI has a potential to sport a negative divergence. The overbought RSI is also a sign to be cautious,” it said.
CIMB Research said that buying at current levels is out of the question. It prefers to be sellers at higher levels, preferably near the RM13.50-RM13.70 levels.
“Anything above RM13.75 may force us to review our negative call. A break below RM13.12 would confirm that the trend has reversed,” it said.
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