Thursday, April 7, 2011

CIMB Research has Buy on JCY at 74.5 sen

KUALA LUMPUR: CIMB Retail Research has a Buy on JCY International at 74.5 sen where it is trading at a FY12 PE of 8.7 times and a price-to-book value of 1.7 times.

It said on Thursday, April 7 JCY rose to a high of 79 sen after breaking out from the wedge pattern.

'At present, the stock is building another foundation before making the next charge. A breakout from its bullish flag pattern would likely push prices towards 79 sen and 86.5 sen next,' it said.

CIMB Research said MACD histogram bars are losing some pace but it added the odds still favoured the bulls. RSI too has hooked upward.

'Traders may consider going long now. To limit exposure, one can put a stop at below 72 sen, its recent swing low. A fall below the 70.5 sen support channel would indicate that a deeper correction is forthcoming,' it said.

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