KUALA LUMPUR: CIMB Equities Research has a technical buy on Mieco Chipboard at 63 sen at which it is trading at a price-to-book value of 0.4 times.
It said on Tuesday, May 10 the'' recent pullback has dragged prices towards its 61.8% FR level and prices appear to be holding well around that level. The 200-day SMA is also within close proximity, which could sometimes also act as a magnet.
'The technical landscape is still in consolidation mode but the fallback appears to be losing momentum. The MACD and RSI are starting to flatten out, possibly suggesting that buyers are getting ready to push prices higher.
'We see any pullback as an opportunity to accumulate. Only a fall below the 55.5 sen, its 78.6%FR, would prompt us to review our call. A break above 66.5 sen would likely send prices higher towards 73.5 sen and 83 sen next,' it said.
It said on Tuesday, May 10 the'' recent pullback has dragged prices towards its 61.8% FR level and prices appear to be holding well around that level. The 200-day SMA is also within close proximity, which could sometimes also act as a magnet.
'The technical landscape is still in consolidation mode but the fallback appears to be losing momentum. The MACD and RSI are starting to flatten out, possibly suggesting that buyers are getting ready to push prices higher.
'We see any pullback as an opportunity to accumulate. Only a fall below the 55.5 sen, its 78.6%FR, would prompt us to review our call. A break above 66.5 sen would likely send prices higher towards 73.5 sen and 83 sen next,' it said.
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