KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on WCT BHD [] at RM2.64 at which it is trading at a FY13 price-to-earnings of 9.8 times and price-to-book value of 1.5 times.
The research house said on Wednesday that WCT, which had broken out from its triangle pattern in February, the share price further pushed above its 200-day SMA before consolidating in a bullish flag pattern.
“Once this consolidation is over, we think the stock is poised for one more leg up,” it said.
CIMB Research said that the MACD signal line is losing pace but remains above the zero line. RSI is also trading above the 50pts mark.
“We see the possible likelihood of a stronger rebound soon. If the candles can hold firm above its 200-day SMA, the next upswing will likely push prices towards RM2.78 and RM2.92 next. Be quick to cut loss if the RM2.58 level is violated,” it said.
The research house said on Wednesday that WCT, which had broken out from its triangle pattern in February, the share price further pushed above its 200-day SMA before consolidating in a bullish flag pattern.
“Once this consolidation is over, we think the stock is poised for one more leg up,” it said.
CIMB Research said that the MACD signal line is losing pace but remains above the zero line. RSI is also trading above the 50pts mark.
“We see the possible likelihood of a stronger rebound soon. If the candles can hold firm above its 200-day SMA, the next upswing will likely push prices towards RM2.78 and RM2.92 next. Be quick to cut loss if the RM2.58 level is violated,” it said.
