KUALA LUMPUR (Jan 6): CIMB Equities Research has a technical buy on Unisem at RM1.09 at which it is trading at a FY13 price-to-earnings of 8.4 times and price-to-book value of 0.7 times.
It said on Friday Unisem is still trapped in a downtrend channel but we think a short term bottom may have formed. The recent sideways consolidation suggests that a base is formed near the RM1.00 level.
“As long as prices stay above the RM1.00 level, we advocate traders to accumulate on weakness. The next upswing is likely to push prices towards RM1.14 and RM1.21. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the MACD signal line is rising towards the zero level while RSI is also above the 50pts mark.
However, the research house said the key risk to this investment is that the stock could prolong its sideways consolidation.
It said on Friday Unisem is still trapped in a downtrend channel but we think a short term bottom may have formed. The recent sideways consolidation suggests that a base is formed near the RM1.00 level.
“As long as prices stay above the RM1.00 level, we advocate traders to accumulate on weakness. The next upswing is likely to push prices towards RM1.14 and RM1.21. The 200-day SMA is also a magnet for prices,” it said.
CIMB Research said the MACD signal line is rising towards the zero level while RSI is also above the 50pts mark.
However, the research house said the key risk to this investment is that the stock could prolong its sideways consolidation.
