KUALA LUMPUR: CIMB Equities Research has a technical Buy on Tan Chong Motors Holdings at RM4.75 at which it is trading at a'' FY12 price-to-earnings of 7.9 times and price-to-book of 1.8 times.
It said on Thursday, June 23 that Tan Chong broke out of its downtrend channel two weeks ago and prices pushed past its 50-day SMA with ease recently.
'We would not be surprised if prices soon test the 200-day SMA at RM5.04.
'Technical landscape remains compelling with its MACD now back in positive territory while its RSI surging to a new high, a level not seen since September 2010,' it said.
CIMB Research said any pullback is an opportunity to accumulate. One can place their stop below the RM4.42 low or below the RM4.24 low.
Breaching its 200-day SMA would likely push prices towards RM5.13 and RM5.34, its 50% and 62% Fibonacci Retracement levels.
It said on Thursday, June 23 that Tan Chong broke out of its downtrend channel two weeks ago and prices pushed past its 50-day SMA with ease recently.
'We would not be surprised if prices soon test the 200-day SMA at RM5.04.
'Technical landscape remains compelling with its MACD now back in positive territory while its RSI surging to a new high, a level not seen since September 2010,' it said.
CIMB Research said any pullback is an opportunity to accumulate. One can place their stop below the RM4.42 low or below the RM4.24 low.
Breaching its 200-day SMA would likely push prices towards RM5.13 and RM5.34, its 50% and 62% Fibonacci Retracement levels.
No comments:
Post a Comment