Wednesday, 7 March 2012

CIMB Research has technical buy on Muhibbah at RM1.40

KUALA LUMPUR (March 7): CIMB Equities Research has a technical buy on Muhibbah Engineering at RM1.40 at which it is trading at a price-to-book value of 1.0 times.

It said on Wednesday that the recent correction dragged prices towards its 30-day SMA but the bulls have since made a comeback.

“A short term base is formed at RM1.31, its recent swing low. This reflects a change in underlying tone from sell to buy,” it said.

CIMB Research said the indicators also show signs of improvement. MACD signal line is poised for a positive crossover while RSI is above the 50pts mark.

“As long as the RM1.31 level remains steady, any pullback is an opportunity to accumulate. Next resistance levels are RM1.53 and RM1.64. Always place a stop at below the RM1.30 level, just in case,” it said.

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