KUALA LUMPUR (Nov 17): CIMB Equities Research has a technical buy on Sunway Bhd at RM2.37 at which it trading at a price-to-book value of 1.2 times.
It said on Thursday that Sunway broke out of its bullish wedge pattern recently. Looking at the chart, it believed prices could still make one more upleg to test its October high of RM2.47 again. Once this level is taken out, the following resistance levels are RM2.60 and RM2.80.
“Technical landscape remains undemanding. MACD signal line is hovering in the positive territory while RSI is above the 50pts mark. We are also encouraged by the fact that its candles are holding all the key moving averages,” it said.
CIMB Research said any pullback towards its 30-day SMA is an opportunity to accumulate. However, always put a stop at between RM2.23-2.17, depending on one’s risk appetite. Falling below its 50-day SMA would negate this uptrend.
It said on Thursday that Sunway broke out of its bullish wedge pattern recently. Looking at the chart, it believed prices could still make one more upleg to test its October high of RM2.47 again. Once this level is taken out, the following resistance levels are RM2.60 and RM2.80.
“Technical landscape remains undemanding. MACD signal line is hovering in the positive territory while RSI is above the 50pts mark. We are also encouraged by the fact that its candles are holding all the key moving averages,” it said.
CIMB Research said any pullback towards its 30-day SMA is an opportunity to accumulate. However, always put a stop at between RM2.23-2.17, depending on one’s risk appetite. Falling below its 50-day SMA would negate this uptrend.
