KUALA LUMPUR: CIMB Equities Research has a BUY on JCY International at 70.5 sen, where it is trading at FY12 price-to-earnings of 8.2 times and price-to-book value of 1.6 times.
It said on Friday, April 29 the recent pullback stopped near its 50% FR level. Since then, prices have rebounded a tad higher to current levels. At present, it thinks a base has been built near the 50-day SMA, which is likely to be its near term support.
'Although prices could still correct a tad lower, we expect prices to inch closer towards RM0.74 and possibly even RM0.83 (its April high) once this sideways consolidation is over. Risk takers may start to nibble now before the next upleg kicks in,' it said.
CIMB Research said the MACD remains lethargic while RSI is a tad below the 50pts mark. However, it believes downside risk will be cushioned by the 50-day SMA. Only a break below RM0.67 would trigger its stop.
It said on Friday, April 29 the recent pullback stopped near its 50% FR level. Since then, prices have rebounded a tad higher to current levels. At present, it thinks a base has been built near the 50-day SMA, which is likely to be its near term support.
'Although prices could still correct a tad lower, we expect prices to inch closer towards RM0.74 and possibly even RM0.83 (its April high) once this sideways consolidation is over. Risk takers may start to nibble now before the next upleg kicks in,' it said.
CIMB Research said the MACD remains lethargic while RSI is a tad below the 50pts mark. However, it believes downside risk will be cushioned by the 50-day SMA. Only a break below RM0.67 would trigger its stop.
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