Wednesday, 14 March 2012

CIMB Research has technical buy on Sanichi at 12.5 sen

KUALA LUMPUR (March 14): CIMB Equities Research has a technical buy on Sanichi TECHNOLOGY [] at 12.5 sen at which it is trading at a price-to-book value of 2.6 times.

The research house said on Wednesday Sanichi Technology is consolidating in a bullish wedge pattern.

“We are waiting for a breakout above its wedge resistance before going long. However, only risk takers should look at this stock due to its volatility,” it said.

CIMB Research said that as long as the candles hold above the 12 sen level, it thinks the odds still favour the bulls.

The research house said traders should be quick to cut loss if this level is breached. The next resistance levels are 15 sen and 16.5 sen.

“Technical landscape remains conducive. MACD signal line is poised for a positive crossover while RSI has bounced back from its lows,” it said.

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