KUALA LUMPUR (Nov 23): CIMB Research has a technical buy on Rimbunan Sawit at 88 sen at which it is trading at a price-to-book value of 0.8 times.
It said on Wednesday the correction from its RM1.04 high reached the 38.2% Fibonacci Retracement level and it thinks a base has been formed.
“If prices can continue to hold on above the 83 sen level, there is a good chance that the candles may swing closer towards 93.5 sen and possibly even RM1.00,” it said.
CIMB Research said the MACD signal line is still hovering in the positive territory while RSI is also above the 50pts mark. These should lend support to the bulls.
“Traders with higher risk appetite may take some position now before stronger rebound set in. However, be quick to cut loss if the 83 sen level is breached,” it said.
It said on Wednesday the correction from its RM1.04 high reached the 38.2% Fibonacci Retracement level and it thinks a base has been formed.
“If prices can continue to hold on above the 83 sen level, there is a good chance that the candles may swing closer towards 93.5 sen and possibly even RM1.00,” it said.
CIMB Research said the MACD signal line is still hovering in the positive territory while RSI is also above the 50pts mark. These should lend support to the bulls.
“Traders with higher risk appetite may take some position now before stronger rebound set in. However, be quick to cut loss if the 83 sen level is breached,” it said.
