KUALA LUMPUR (Nov 8): CIMB Research has a technical buy on Mulpha International at 39.5 sen at which it is trading at a price-to-book value of 0.3 times.
It said on Tuesday Mulpha appears to be forming a short term bullish flag pattern, and this pattern suggests that prices are more likely to breakout of its long term downtrend resistance soon.
“MACD and RSI are flattening out but remained above the key support levels. This would increase the odds of another break upwards.
“The stock is a buy now with a stop placed below 38 sen, is 30-day SMA. The gap at 38 sen to 39.5 sen could also give the bulls some support. On the upside, resistance is seen at 42.5 sen and the gap at 45 sen to 46 sen. The 200-day SMA at 48 sen could also be tested,” it said.
It said on Tuesday Mulpha appears to be forming a short term bullish flag pattern, and this pattern suggests that prices are more likely to breakout of its long term downtrend resistance soon.
“MACD and RSI are flattening out but remained above the key support levels. This would increase the odds of another break upwards.
“The stock is a buy now with a stop placed below 38 sen, is 30-day SMA. The gap at 38 sen to 39.5 sen could also give the bulls some support. On the upside, resistance is seen at 42.5 sen and the gap at 45 sen to 46 sen. The 200-day SMA at 48 sen could also be tested,” it said.
