KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on Zelan at 50.5 sen at which it is trading at a price-to-book value of 1.9 times.
It said on Wednesday that Zelan broke out of its bullish flag pattern on Tuesday on high volume.
“We think it is due for another rebound. However, our strategy here would be to buy on weakness due to yesterday’s strong run-up,” it said.
CIMB Research said the technical reading was improving. MACD histogram bars were falling at a slower pace, suggesting that selling pressure was tapering off. RSI indicator had also hooked upward.
“The 30-day SMA looks like a good support here. We will only review our call if prices broke below this moving average, now at 45 sen. Resistance is seen at the 53 sen and 55 sen levels,” it said.
It said on Wednesday that Zelan broke out of its bullish flag pattern on Tuesday on high volume.
“We think it is due for another rebound. However, our strategy here would be to buy on weakness due to yesterday’s strong run-up,” it said.
CIMB Research said the technical reading was improving. MACD histogram bars were falling at a slower pace, suggesting that selling pressure was tapering off. RSI indicator had also hooked upward.
“The 30-day SMA looks like a good support here. We will only review our call if prices broke below this moving average, now at 45 sen. Resistance is seen at the 53 sen and 55 sen levels,” it said.
