KUALA LUMPUR (Jan 20): CIMB Equities Research has a technical buy on MALAYSIAN PACIFIC INDUSTRIES [] at RM3.15 at which it is trading at a price-to-book value of 0.8 times.
It said on Friday MPI broke out of its downtrend channel on Thursday. Prices also took out its 50-day SMA along the way.
“It appears that the stock has found its near term bottom at RM2.57 and the bulls are now flexing the muscle. The next upleg is likely to take prices back towards RM3.35 and RM3.45,” it said.
CIMB Research said the bullish divergence on its MACD indicator shows that selling pressure has tapered off. MACD had also hooked upward. These positive technical readings further reinforced its bullish stance on the stock.
“Any pullback towards its 50-day SMA is an opportunity to accumulate. However, always place a stop at below RM3.00 to limit risk,” it said.
It said on Friday MPI broke out of its downtrend channel on Thursday. Prices also took out its 50-day SMA along the way.
“It appears that the stock has found its near term bottom at RM2.57 and the bulls are now flexing the muscle. The next upleg is likely to take prices back towards RM3.35 and RM3.45,” it said.
CIMB Research said the bullish divergence on its MACD indicator shows that selling pressure has tapered off. MACD had also hooked upward. These positive technical readings further reinforced its bullish stance on the stock.
“Any pullback towards its 50-day SMA is an opportunity to accumulate. However, always place a stop at below RM3.00 to limit risk,” it said.
