KUALA LUMPUR: CIMB Equities Research has a technical Buy call on YTL e-Solutions at 95.5 sen at which it is trading at a FY12'' price-to-book value of 7.3 times.
It said on Monday, July 11 the pullback from the high of RM1.78 appears to be at its tail end after forming a bearish wedge like pattern. The slope of the downtrend has flatten so much that could possibly suggest that prices are about ready for a good rebound rally.
CIMB Research said the MACD and RSI show multiple bullish divergence signals, which could mean that stale bulls are selling. There is a good chance that a trend reversal move is about to take place or already has.
'We think that the stock is a buy now with a tight stop placed below the recent swing low of'' 93.5 sen. One can also place their stop below 90.5 sen.
'In the near term, we expect prices to take out its moving averages at 99 sen (30-day SMA) and RM1.01 (50-day SMA) to rally towards its RM1.15 levels (its 200-day SMA) next in the coming weeks,' it said.
It said on Monday, July 11 the pullback from the high of RM1.78 appears to be at its tail end after forming a bearish wedge like pattern. The slope of the downtrend has flatten so much that could possibly suggest that prices are about ready for a good rebound rally.
CIMB Research said the MACD and RSI show multiple bullish divergence signals, which could mean that stale bulls are selling. There is a good chance that a trend reversal move is about to take place or already has.
'We think that the stock is a buy now with a tight stop placed below the recent swing low of'' 93.5 sen. One can also place their stop below 90.5 sen.
'In the near term, we expect prices to take out its moving averages at 99 sen (30-day SMA) and RM1.01 (50-day SMA) to rally towards its RM1.15 levels (its 200-day SMA) next in the coming weeks,' it said.
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