April 25, 2011

FAJAR - CIMB Research has Sell on Fajarbaru Builder

Stock Name: FAJAR
Company Name: FAJARBARU BUILDER GRP BHD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research has a SELL on Fajarbaru Builder Group at RM1.16 and the share price is trading at a price-to-book value of 1.3 times.

It said on Monday, April 25 Fajarbaru is gyrating in a bearish flag pattern, which is usually perceived as a downward reversal pattern. Although prices could still bounce a tad higher from here, sustainability is a key concern as momentum should turn weaker near the resistance level.

MACD is flat while RSI is beginning to dwindle. Near term gains are likely capped at RM1.20-RM1.25.

'Traders may want to unload some position near the stipulated resistance zone. Others should sell when prices break below its 200-day SMA at RM1.08. Next downside targets are RM1.02 and 95 sen,' it said.

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