KUALA LUMPUR (Nov 15): CIMB Equities Research has a technical buy on Fitters Diversified at 83.5 sen at which it is trading at a price-to-book value of 1.2 times.
It said on Tuesday Fitters Diversified has been resilient for the past two weeks, with prices holding steadily above its 30-day SMA. This shows that the bears are well contained and a short term support has been formed.
“Yesterday, the stock broke out of its resistance channel. We believe this is the beginning of the next upleg. If we are right, the next upswing is likely to lift prices towards 87 sen and 93 sen. The 200-day SMA at 90 sen is also a magnet for prices,” it said.
CIMB Research said the technical landscape remains undemanding. MACD signal line remains in the positive territory while RSI is also rising. Only a fall below 79.5 sen would trigger its stop.
It said on Tuesday Fitters Diversified has been resilient for the past two weeks, with prices holding steadily above its 30-day SMA. This shows that the bears are well contained and a short term support has been formed.
“Yesterday, the stock broke out of its resistance channel. We believe this is the beginning of the next upleg. If we are right, the next upswing is likely to lift prices towards 87 sen and 93 sen. The 200-day SMA at 90 sen is also a magnet for prices,” it said.
CIMB Research said the technical landscape remains undemanding. MACD signal line remains in the positive territory while RSI is also rising. Only a fall below 79.5 sen would trigger its stop.
