KUALA LUMPUR: CIMB Equities Research has a Buy on Petronas Chemical Group at RM7.02 at which it is trading at a FY12 price-to-earnings of 18 times and price-to-book of 2.9 times.
It said on Tuesday, June 21 that PetChem appears to have formed a consolidation triangle after hitting a high of RM7.61 in April. The sideways movement seen on its moving averages supports the triangle view.
The MACD continue to swing between the positive and negative territory, in line with the sideways movement in price. The RSI is also holding above the 40-pts mark, which could be viewed as base building.
"We think that bulls could soon dominate trading again once prices breakout of its triangle resistance at RM7.22. The stock is a buy now with a stop placed below RM6.96. A breakout above RM7.22 would likely send prices shooting towards the RM7.61 high with a small chance to reaching RM7.90-RM8 next," it said.
It said on Tuesday, June 21 that PetChem appears to have formed a consolidation triangle after hitting a high of RM7.61 in April. The sideways movement seen on its moving averages supports the triangle view.
The MACD continue to swing between the positive and negative territory, in line with the sideways movement in price. The RSI is also holding above the 40-pts mark, which could be viewed as base building.
"We think that bulls could soon dominate trading again once prices breakout of its triangle resistance at RM7.22. The stock is a buy now with a stop placed below RM6.96. A breakout above RM7.22 would likely send prices shooting towards the RM7.61 high with a small chance to reaching RM7.90-RM8 next," it said.
No comments:
Post a Comment