KUALA LUMPUR (March 12): CIMB Research has technical buy on Malaysia Marine and Heavy Engineering at RM5.42 at which it is trading at a FY13 price-to-earnings of 20.8 times and price-to-book value of 3.5 times.
It said on Monday the stock is penetrating the wedge resistance. If it succeeds, there is a good chance that prices may re-rate towards RM5.65 and RM5.78. Momentum should pick up once the candles swing past the 50-day SMA.
“The bullish divergence on the MACD indicator shows that selling pressure has tapered off. This, together with the rising RSI signal line, shows that the bulls are slowly making a comeback.
“As long as prices stay above the RM5.28 level, any pullback is an opportunity to accumulate,” CIMB Research said.
It said on Monday the stock is penetrating the wedge resistance. If it succeeds, there is a good chance that prices may re-rate towards RM5.65 and RM5.78. Momentum should pick up once the candles swing past the 50-day SMA.
“The bullish divergence on the MACD indicator shows that selling pressure has tapered off. This, together with the rising RSI signal line, shows that the bulls are slowly making a comeback.
“As long as prices stay above the RM5.28 level, any pullback is an opportunity to accumulate,” CIMB Research said.
