KUALA LUMPUR (Feb 16): CIMB Equities Research has a technical buy on MBF Holdings at 98 sen at which it is trading at a price-to-book value of 0.6 times.
It said on Thursday that prices have traded in a tight band since hitting a high of RM1.14 back in December.
“The stock appears to be building a base above the 50-day SMA in what looks like a triangle pattern.
“MACD is also sitting comfortably near the zero line while its RSI is above the 40-50pts mark. Both indicators appear to be turning upwards very slowly,” it said.
CIMB Research said any pullback is an opportunity to accumulate. However, always place a stop at below 94.5 sen to limit downside exposure as a break below would eliminate the triangle pattern and hence also eliminate the bullish continuation view.
It said on Thursday that prices have traded in a tight band since hitting a high of RM1.14 back in December.
“The stock appears to be building a base above the 50-day SMA in what looks like a triangle pattern.
“MACD is also sitting comfortably near the zero line while its RSI is above the 40-50pts mark. Both indicators appear to be turning upwards very slowly,” it said.
CIMB Research said any pullback is an opportunity to accumulate. However, always place a stop at below 94.5 sen to limit downside exposure as a break below would eliminate the triangle pattern and hence also eliminate the bullish continuation view.
