KUALA LUMPUR (Nov 9): CIMB Equities Research has a technical buy on Digistar Corporation at 42.5 sen at which it is trading at a price-to-book value of 1.9 times.
It said on Wednesday Digistar broke out of its consolidation triangle on Tuesday on rising volume.
“There is a good chance that prices may re-rate higher and retest the 47.5 sen to 48.5 sen resistance next. The following resistance is 53.5 sen,” it said.
CIMB Research said the technical landscape is improving with its MACD histogram turning positive again while RSI has also hooked upwards.
“However, to prevent a bull’s trap, traders should place a stop below 40 sen just in case. This breakout run should be quick and strong,” it said.
It said on Wednesday Digistar broke out of its consolidation triangle on Tuesday on rising volume.
“There is a good chance that prices may re-rate higher and retest the 47.5 sen to 48.5 sen resistance next. The following resistance is 53.5 sen,” it said.
CIMB Research said the technical landscape is improving with its MACD histogram turning positive again while RSI has also hooked upwards.
“However, to prevent a bull’s trap, traders should place a stop below 40 sen just in case. This breakout run should be quick and strong,” it said.
