KUALA LUMPUR (March 26): CIMB Equities Research has a technical buy on Kuala Lumpur Kepong at RM23.90, at which it is trading at a FY13 price-to-earnings of 17.3 times and price-to-book value of 0.2 times
It said on Monday the recent consolidation dragged KLK towards its 50% Fibonacci Retracement level. However, the correction was well-contained and prices are now backed above its 30-day SMA.
“We may see stronger rebound ahead. If the stock can swing back above its 50-day SMA (now at RM23.97), there is a good chance that prices may edge closer towards RM25.40 and RM26.00,” it said.
CIMB Research said aggressive traders may start to nibble now while others should wait for a push above the 50-day SMA before going long. Put a stop at below RM23.
It said on Monday the recent consolidation dragged KLK towards its 50% Fibonacci Retracement level. However, the correction was well-contained and prices are now backed above its 30-day SMA.
“We may see stronger rebound ahead. If the stock can swing back above its 50-day SMA (now at RM23.97), there is a good chance that prices may edge closer towards RM25.40 and RM26.00,” it said.
CIMB Research said aggressive traders may start to nibble now while others should wait for a push above the 50-day SMA before going long. Put a stop at below RM23.
