KUALA LUMPUR (Jan 9): CIMB Equities Research has a technical buy on ENG TEKNOLOGI HOLDINGS BHD [] at RM1.69 at which it is trading at a price-to-book value of 0.7 times.
It said on Monday EngTek broke out of its consolidation pattern last Friday and it believes this is a prelude to more upside ahead.
“If we are right, the next upswing is likely to push prices towards RM1.79 and RM1.89. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the bullish divergence on its MACD signal line suggests that buying momentum has picked up. RSI too has hooked upward.
“Buy on weakness looks like a good option here. However, always place a stop at below RM1.61-RM1.55 to limit downside risk,” it said.
It said on Monday EngTek broke out of its consolidation pattern last Friday and it believes this is a prelude to more upside ahead.
“If we are right, the next upswing is likely to push prices towards RM1.79 and RM1.89. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the bullish divergence on its MACD signal line suggests that buying momentum has picked up. RSI too has hooked upward.
“Buy on weakness looks like a good option here. However, always place a stop at below RM1.61-RM1.55 to limit downside risk,” it said.
