KUALA LUMPUR: CIMB Equities Research has a technical Buy call on DRB-HICOM BHD [] at RM2.21 at which it is trading at a price-to-book value of 0.9 times.
It said on Tuesday, May 24 the pullback for DRB appears to be at its tail end. Prices are now sitting around its 50-day SMA and are still above its key support levels at RM2.10.
'Its MACD has pulled back to its zero line while its RSI is still holding above the 40-pts mark.
'This pullback should be viewed as an opportunity to buy as the uptrend from the March 2011 lows is not over. The next upleg should take prices to a new high of RM2.55 or RM2.80, where the former is where wave v of 5 is equal to wave i of 5 while the latter is 1.618x of wave i of 5. A drop below RM2.10 would trigger our stop,' it said.
It said on Tuesday, May 24 the pullback for DRB appears to be at its tail end. Prices are now sitting around its 50-day SMA and are still above its key support levels at RM2.10.
'Its MACD has pulled back to its zero line while its RSI is still holding above the 40-pts mark.
'This pullback should be viewed as an opportunity to buy as the uptrend from the March 2011 lows is not over. The next upleg should take prices to a new high of RM2.55 or RM2.80, where the former is where wave v of 5 is equal to wave i of 5 while the latter is 1.618x of wave i of 5. A drop below RM2.10 would trigger our stop,' it said.
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