Wednesday, June 15, 2011

CIMB Research has Buy on Padini at RM1.14

KUALA LUMPUR: CIMB Equities Research has technical Buy on PADINI HOLDINGS BHD [] at RM1.14 at which it is trading at a price-to-book value of 2.7 times.

It said on Wednesday, June 15 that Padini appears to be forming a triangle pattern. If this is indeed a triangle, prices should take out the RM1.17 level soon. The following resistance levels are RM1.25 and RM1.35 next.

'Technical landscape remains compelling. MACD is in the positive territory while RSI is above the 50pts mark.

'Recent consolidation found its support near the 30-day and 50-day SMAs. Hence, aggressive traders may start to nibble now. Only a fall below RM1.08 would trigger our stop,' it said.

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