Hap Seng Consolidated (HAP MK; RM1.72, Sell) - Turning down from here?

Stock Name: HAPSENG
Company Name: HAP SENG CONSOLIDATED BHD

Research House: CIMB

Price Call: SELL

Target Price: 1.72

FY13P/E: N/A, P/BV: 1.1x

• After falling in 5 waves from the January 2011 high to an August low, prices appear to be rebounding in 3. A typical rebound would take prices back up to its 62% Fibonacci Retracement levels and the stock is just points shy from that level.
• With momentum indicators showing a slowdown in buying, bulls should be on the ball in the coming days if not weeks. A break below RM1.68 would indicate that the trend has changed and anything below its 50-day SMA would confirm that reversal in trend.
• Sell on rallies or sell on the break below RM1.68. Over the next couple of weeks to months, we expect prices to fall back to at least test the 200-day SMA at RM1.49 but ultimately to retest the November low of RM1.35.

Hap Seng Consolidated Berhad operates oil palm and cocoa plantations, trades heavy equipment and motor vehicles, fabricates and sells commercial trailers and tankers, provides leasing and money lending, and manufactures agricultural fertilizers, agro-chemicals, building materials, and plantation supplies.

Source: CIMB Trader AM - 27th Feb 2012