Friday, June 17, 2011

CIMB Research has Buy on Kurnia Asia

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on Kurnia Asia at 43.5 sen at which it is trading at price-to-book of 1.7 times.

It said on Friday, June 17 that Kurnia Asia broke out of its consolidation triangle pattern on Thursday. The upswing also took out its key moving averages along the way.

'Looking at the chart, we think prices could still make one more upleg, likely towards 46 sen and possibly even 48.5 sen. Technical landscape is improving. MACD histogram bars have returned to the black while RSI is also rising,' it said.

CIMB Research said traders may start to nibble now. However, always put a stop at below 40 sen to avoid bull traps. If this level is breached, the next support levels are 37.5 sen and 34 sen.

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