KUALA LUMPUR (March 23): CIMB Equities Research has a technical buy on MISC at RM5.42 at which it is trading at FY13 price-to-earnings of 15.9 times and price-to-book value of 1.2 times.
It said on Friday MISC appears to have completed the final leg of its long term bullish wedge pattern. The pick up in trading volume at the low on March 14 possibly suggest a selling climax. Two days later, trading more than doubled on the positive day.
“Indicators are showing signs of selling exhaustion. The triple bullish divergence on its MACD and RSI would support the selling climax view,” it said.
CIMB Research said any weakness should be viewed as a chance to buy as long as prices stay above the RM5.01 low. This bounce could reach as high as RM6.20.
It said on Friday MISC appears to have completed the final leg of its long term bullish wedge pattern. The pick up in trading volume at the low on March 14 possibly suggest a selling climax. Two days later, trading more than doubled on the positive day.
“Indicators are showing signs of selling exhaustion. The triple bullish divergence on its MACD and RSI would support the selling climax view,” it said.
CIMB Research said any weakness should be viewed as a chance to buy as long as prices stay above the RM5.01 low. This bounce could reach as high as RM6.20.
