Friday, June 24, 2011

CIMB Research has Buy on WTK at RM1.86

KUALA LUMPUR: CIMB Equities Research has technical Buy on WTK Holdings Bhd [] at RM1.86 at which it is trading at price-to-book value of 1.2 times.

It said on Friday, June 24 WTK Holdings has been trading in a triangle pattern for the past few months.

'As the resistance and support trend lines converge, we think the stock is ripe for a stronger rebound,' it said.

CIMB Research said the MACD is poised for a positive crossover while RSI has also hooked upward.

Once the resistance trend line (now at RM1.94) is taken out, it expects prices to swing towards RM2.04 and RM2.20 next.

'Traders may start to nibble now. However, always put a stop at below RM1.72, its April's low, in case this is a bull trap,' it said.

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