KUALA LUMPUR (March 29): CIMB Equities Research has a technical buy on Malayan Flour Mills at RM4.65, at which it is trading at a price-to-book value of 1.9 times.
It said on Wednesday Malayan Floor Mills broke out of its consolidation triangle pattern on Tuesday.
“We think that there is a good chance that the stock may swing past its previous high of RM4.68 soon. Once this level is taken out, the following resistance levels are RM4.92 and RM5.10,” it said.
CIMB Research said the indicators also supported its positive stance. MACD is poised for a positive crossover while RSI has also hooked upward.
“Aggressive traders may take position now. However, always place a stop at below RM4.44-RM4.30 to limit downside risk,” it said.
It said on Wednesday Malayan Floor Mills broke out of its consolidation triangle pattern on Tuesday.
“We think that there is a good chance that the stock may swing past its previous high of RM4.68 soon. Once this level is taken out, the following resistance levels are RM4.92 and RM5.10,” it said.
CIMB Research said the indicators also supported its positive stance. MACD is poised for a positive crossover while RSI has also hooked upward.
“Aggressive traders may take position now. However, always place a stop at below RM4.44-RM4.30 to limit downside risk,” it said.
