KUALA LUMPUR (Nov 30): CIMB Equities Research has a technical buy on AMMB HOLDINGS BHD [] at RM5.92 at which it is trading at a price-to-book value of 0.5 times.
It said on Wednesday AMMB broke out of its medium term downtrend channel on Tuesday on strong volume. Prices also pushed above its 30-day and 50-day SMAs along the way. This could be seen as a prelude to more upside ahead.
“MACD signal line has staged a positive crossover while RSI has also hooked upward. The bulls will have the upper hand here as long as prices stay above the RM5.66 level.
“Traders with higher risk appetite may start to nibble now. The next resistance levels are RM6.22 and RM6.55. However, to avoid being caught in a dead cat bounce, traders should be put a stop at below RM5.80-RM5.66,” said CIMB Research.
It said on Wednesday AMMB broke out of its medium term downtrend channel on Tuesday on strong volume. Prices also pushed above its 30-day and 50-day SMAs along the way. This could be seen as a prelude to more upside ahead.
“MACD signal line has staged a positive crossover while RSI has also hooked upward. The bulls will have the upper hand here as long as prices stay above the RM5.66 level.
“Traders with higher risk appetite may start to nibble now. The next resistance levels are RM6.22 and RM6.55. However, to avoid being caught in a dead cat bounce, traders should be put a stop at below RM5.80-RM5.66,” said CIMB Research.
