KUALA LUMPUR (Jan 9): CIMB Equities Research has a technical buy on LION CORPORATION BHD [] at 18.5 sen at which it is trading at a price-to-book value of 3.3 times.
It said on Monday Lion Corp is still trapped in a downtrend channel but it thinks a short term bottom may have formed. The recent sideways consolidation suggests that a base is formed near the 16.5 sen level.
“As long as prices stay above the 16.5 sen level, we advocate traders to accumulate on weakness. The next upswing is likely to push prices towards 19.5 sen and 20.5 sen. The 200-day SMA is also a magnet for prices.
“MACD signal line is rising towards the zero level while RSI has also hooked upward. Key risk to this investment is that the stock could prolong its sideways consolidation,” CIMB Research said.
It said on Monday Lion Corp is still trapped in a downtrend channel but it thinks a short term bottom may have formed. The recent sideways consolidation suggests that a base is formed near the 16.5 sen level.
“As long as prices stay above the 16.5 sen level, we advocate traders to accumulate on weakness. The next upswing is likely to push prices towards 19.5 sen and 20.5 sen. The 200-day SMA is also a magnet for prices.
“MACD signal line is rising towards the zero level while RSI has also hooked upward. Key risk to this investment is that the stock could prolong its sideways consolidation,” CIMB Research said.
