KUALA LUMPUR: CIMB Equities Research has a technical buy on Hock Seng Lee ar RM1.40 at which it is trading at a price-to-book value of 2.1 times.
It said on Friday, Oct 28 that Hock Seng Lee broke out of its downtrend channel on Thursday.
“This is a prelude to more upside ahead. If we are right, prices should re-rate towards RM1.47 and RM1.52 over the next few days. As long as prices stay above its 50-day SMA, we think the odds are favouring the bulls,” it said.
CIMB Research said the technical landscape is improving. The bullish divergence on its MACD shows that buying momentum is picking up. RSI too has also swung above the 50 pts mark.
“Risk takers may start to nibble now. However, always put a stop at between RM1.35 and RM1.28, depending on one’s risk appetite,” it said.
It said on Friday, Oct 28 that Hock Seng Lee broke out of its downtrend channel on Thursday.
“This is a prelude to more upside ahead. If we are right, prices should re-rate towards RM1.47 and RM1.52 over the next few days. As long as prices stay above its 50-day SMA, we think the odds are favouring the bulls,” it said.
CIMB Research said the technical landscape is improving. The bullish divergence on its MACD shows that buying momentum is picking up. RSI too has also swung above the 50 pts mark.
“Risk takers may start to nibble now. However, always put a stop at between RM1.35 and RM1.28, depending on one’s risk appetite,” it said.
