KUALA LUMPUR (March 2): CIMB Equities Research has a technical buy on Faber Group at RM1.78 at which it is trading at a price-to-book value of 0.6 times.
It said on Friday that Faber has been consolidating sideways for the past few weeks and the share price is poised for a stronger rebound. Once the recent high of RM1.85 is taken out, the stock is likely to edge closer towards RM1.95 and RM2.06.
“It appears that a base has formed near its 50-day SMA, now at RM1.67. As long as this moving average holds, we think the odds favour the bulls. Only a break below RM1.65 would negate our bullishness on the stock,” it said.
CIMB Research said the technical indicators are showing signs of improvement, suggesting that buying momentum is picking up. MACD signal line is poised for a positive crossover while RSI has also hooked upward.
It said on Friday that Faber has been consolidating sideways for the past few weeks and the share price is poised for a stronger rebound. Once the recent high of RM1.85 is taken out, the stock is likely to edge closer towards RM1.95 and RM2.06.
“It appears that a base has formed near its 50-day SMA, now at RM1.67. As long as this moving average holds, we think the odds favour the bulls. Only a break below RM1.65 would negate our bullishness on the stock,” it said.
CIMB Research said the technical indicators are showing signs of improvement, suggesting that buying momentum is picking up. MACD signal line is poised for a positive crossover while RSI has also hooked upward.
