KUALA LUMPUR (March 29): CIMB Equities Research has a technical buy on Alliance Financial Group at RM3.88 at which it is trading at a FY13P/E of 11.4 times and price-to-book value of 1.6 times.
It said on Thursday that the rally from its September 2011 low may be coming to an end soon after one more spike to new highs. The current sideways movement is forming a triangle, which supports the view that another new leg up could take place soon.
“Indicators are flat but holding above their respective support levels. A turn up in prices should be followed by these indicators.
“A breakout above RM3.89 on rising volume could see prices shoot towards RM3.97 or even the RM4.05-RM4.10 levels. Using a tight stop of RM3.79 or below, one can go long now or on weakness,” it said.
It said on Thursday that the rally from its September 2011 low may be coming to an end soon after one more spike to new highs. The current sideways movement is forming a triangle, which supports the view that another new leg up could take place soon.
“Indicators are flat but holding above their respective support levels. A turn up in prices should be followed by these indicators.
“A breakout above RM3.89 on rising volume could see prices shoot towards RM3.97 or even the RM4.05-RM4.10 levels. Using a tight stop of RM3.79 or below, one can go long now or on weakness,” it said.
