Hong Leong Bank (HLBK MK; RM11.70, Sell) - A potential top?

Stock Name: HLBANK
Company Name: HONG LEONG BANK BHD

Research House: CIMB

Price Call: SELL

Target Price: 11.70

FY13P/E: 11.3x, P/BV: 2.2x

• The rebound from its September low has taken prices back up to above its 62% Fibonacci retracement levels. Thursday's bearish engulfing pattern could potentially be the top of this rebound rally.
• Coupled with the bearish divergence on both its MACD and RSI, there is a good chance that this rebound has ended. Even if there is still upside, it would likely be capped around RM12.00-12.30, where the latter is its 78.6%FR levels.
• The stock is a sell on further rallies with a buy stop placed above RM12.30. One should also sell if prices close below the uptrend channel support at RM11.10. The next possible stop would be RM10.22.

Hong Leong Bank Berhad provides commercial banking and related financial services. The company's services include leasing and hire purchase, nominee, Islamic Banking, and unit trust management. Through its subsidiaries, the Company also develops and invests in real estate.

Source: CIMB Trader AM - 27th Feb 2012