KUALA LUMPUR: CIMB Research has a Buy on CSC Steel Holdings at RM1.73 at which it is trading at a price-to-book value of 0.8 times.
It said on Thursday, June 9 that CSC Steel appears to be stuck within its long term consolidation triangle. At the moment, prices are sitting clinging on to its moving averages.
'Yesterday (Wednesday), we saw a pick up in trading momentum, which could be an early signal of a possible trend change. Its indicators, on the other hand, are flat, suggesting that prices are still in consolidation mode,' it said.
CIMB Research said aggressive traders may opt to go long now with a stop placed below the recent swing low of RM1.66. A breakout above the triangle resistance at RM1.85 would likely induce another round of buying. The breakout could take prices above the RM2.00 high towards RM2.10-RM2.12 next.
It said on Thursday, June 9 that CSC Steel appears to be stuck within its long term consolidation triangle. At the moment, prices are sitting clinging on to its moving averages.
'Yesterday (Wednesday), we saw a pick up in trading momentum, which could be an early signal of a possible trend change. Its indicators, on the other hand, are flat, suggesting that prices are still in consolidation mode,' it said.
CIMB Research said aggressive traders may opt to go long now with a stop placed below the recent swing low of RM1.66. A breakout above the triangle resistance at RM1.85 would likely induce another round of buying. The breakout could take prices above the RM2.00 high towards RM2.10-RM2.12 next.
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