KUALA LUMPUR: CIMB Equities Research has a technical buy on Petronas Chemicals at RM6.16, at which it is trading at a FY12 price-to-earnings of 10.3 times and price-to-book value of 2.4 times.
It said on Tuesday, Oct 25 that· Petronas Chemicals broke out of its medium term downtrend channel on Monday.
“The run-up also took out its 50-day SMA along the way. We believe this is a prelude to more upside ahead. If we are right, prices should bounce closer towards RM6.47 and RM6.81 next. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the technical landscape remains conducive. MACD signal line has swung into the positive territory while RSI is above the 50pts mark.
“Risk takers may start to nibble now to ride this breakout run. However, always put a stop at below RM5.98, just in case,” it said.
It said on Tuesday, Oct 25 that· Petronas Chemicals broke out of its medium term downtrend channel on Monday.
“The run-up also took out its 50-day SMA along the way. We believe this is a prelude to more upside ahead. If we are right, prices should bounce closer towards RM6.47 and RM6.81 next. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the technical landscape remains conducive. MACD signal line has swung into the positive territory while RSI is above the 50pts mark.
“Risk takers may start to nibble now to ride this breakout run. However, always put a stop at below RM5.98, just in case,” it said.
