KUALA LUMPUR (March 21): CIMB Equities Research has a technical buy on Supermax Corporation at RM1.90 which it is trading at a FY13 price-to-earnings of 7.6 times and price-to-book of 1.7 times
It said on Wednesday the recent correction dragged Supermax to the 38.2% Fibonacci Retracement levels. This would likely be its first line of defence. If prices can hold on above its previous swing low of RM1.87, there is a good chance that a stronger rebound would kick in.
“Technical indicators are showing sign of improvement. MACD signal line has flattened out, suggesting that selling pressure has tapered off. RSI too has bounced off its lows,” it said.
CIMB Research said aggressive traders may take some position here while others should only join the bandwagon after prices swing past the short term resistance trend line at RM2.00. A break below RM1.87 would negate this bullish tone.
It said on Wednesday the recent correction dragged Supermax to the 38.2% Fibonacci Retracement levels. This would likely be its first line of defence. If prices can hold on above its previous swing low of RM1.87, there is a good chance that a stronger rebound would kick in.
“Technical indicators are showing sign of improvement. MACD signal line has flattened out, suggesting that selling pressure has tapered off. RSI too has bounced off its lows,” it said.
CIMB Research said aggressive traders may take some position here while others should only join the bandwagon after prices swing past the short term resistance trend line at RM2.00. A break below RM1.87 would negate this bullish tone.
