KUALA LUMPUR: CIMB Equities Research has a Buy call on LION INDUSTRIES CORPORATION [] at RM1.57 at which it is trading at a price-to-book value of 0.4 times.
It said on Friday, June 10 that Lion Industries is probably consolidating at the tail end of the descending wedge pattern. If prices can continue to hold on above the RM1.50 low, there is a good chance that prices may bounce back above its key moving averages.
'After taking out the RM16.7 wedge resistance, the stock should re-rate towards RM1.75-1.78. Indicators are showing signs of improvement. MACD is poised for a positive crossover while RSI is also rising.
'Risk takers may start to nibble now but a stop at RM1.50 is a must. Breaking below this level would drag prices back to the May10 low of RM1.37,' it said.
It said on Friday, June 10 that Lion Industries is probably consolidating at the tail end of the descending wedge pattern. If prices can continue to hold on above the RM1.50 low, there is a good chance that prices may bounce back above its key moving averages.
'After taking out the RM16.7 wedge resistance, the stock should re-rate towards RM1.75-1.78. Indicators are showing signs of improvement. MACD is poised for a positive crossover while RSI is also rising.
'Risk takers may start to nibble now but a stop at RM1.50 is a must. Breaking below this level would drag prices back to the May10 low of RM1.37,' it said.
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