KUALA LUMPUR (Nov 15): CIMB Equities Research has a technical buy on Boilermech Holdings at 67.5 sen at which it is trading at a price-to-book value of 3.7 times.
It said on Tuesday that Boilermech broke out of its triangle resistance on Monday on strong volume.
“Looking at the chart, we think there is still room to the upside. Once the candles take out the 69.5 sen level (yesterday’s high), there is a good chance that the prices may charge towards the next resistance at 72 sen and 75 sen,” it said.
CIMB Research said the MACD signal line has staged a positive crossover, pushing its histogram bar into the positive territory. Meanwhile, RSI is also above the 50pts mark.
“Our strategy here is to buy on weakness as the stock may be subjected to some profit taking after recent rally. As long as prices stay above 64.5 sen, we will stick with the bull’s camp,” it said.
It said on Tuesday that Boilermech broke out of its triangle resistance on Monday on strong volume.
“Looking at the chart, we think there is still room to the upside. Once the candles take out the 69.5 sen level (yesterday’s high), there is a good chance that the prices may charge towards the next resistance at 72 sen and 75 sen,” it said.
CIMB Research said the MACD signal line has staged a positive crossover, pushing its histogram bar into the positive territory. Meanwhile, RSI is also above the 50pts mark.
“Our strategy here is to buy on weakness as the stock may be subjected to some profit taking after recent rally. As long as prices stay above 64.5 sen, we will stick with the bull’s camp,” it said.
