Tuesday, 6 March 2012

CIMB Research has technical buy on Latexx Partners at RM1.58

KUALA LUMPUR (March 6): CIMB Equities Research has a technical buy on Latexx Partners at RM1.58 at which it is trading at a FY13 price-to-earnings of 5.6 times and is trading at a price-to-book value of 1.3 times.

It said on Tuesday that the correction from its Nov-11 was sharp. Prices fell to its 61.8% Fibonacci Retracement level before a base was formed.

“Looking at the chart, we think a short term support was found at the RM1.50 level. Indicators are showing signs of improvement. MACD histogram bars are falling at a slower pace, suggesting that selling pressure has tapered off. Meanwhile, RSI has also hooked upward,” it said.

CIMB Research said as long as the RM1.50 level holds steady, any pullback is an opportunity to accumulate. Next resistance levels are RM1.73 and RM1.87. Be quick to cut loss if the RM1.50 level is breached as next support is at RM1.40.

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