KUALA LUMPUR: CIMB Equities Research has a Technical Buy on Carlsberg Brewery at RM7.71 at which it is trading at a FY12 price-to-earnings of 14.3 times and price-to-book value of 3.7 times.
It said on Tuesday, July 19 the stock broke out of its bullish wedge pattern two weeks ago and built a base above its moving averages and the wedge resistacne turned support levels.
'Yesterday's upwards movement could signal that the bulls are showing their hand,' it said.
CIMB Research said Carlsberg's MACD had moved back into positive territory while its RSI is now in the overbought region. A minor pullback could take place but the trend is still up.
'Traders may opt to buy on weakness with a stop placed below RM7.48. We expect prices to push back above the the old high of RM8.04 towards RM8.18-RM8.25 next. Anything below RM7.14 would mean that the uptrend from 2010 could be over,' it said.
It said on Tuesday, July 19 the stock broke out of its bullish wedge pattern two weeks ago and built a base above its moving averages and the wedge resistacne turned support levels.
'Yesterday's upwards movement could signal that the bulls are showing their hand,' it said.
CIMB Research said Carlsberg's MACD had moved back into positive territory while its RSI is now in the overbought region. A minor pullback could take place but the trend is still up.
'Traders may opt to buy on weakness with a stop placed below RM7.48. We expect prices to push back above the the old high of RM8.04 towards RM8.18-RM8.25 next. Anything below RM7.14 would mean that the uptrend from 2010 could be over,' it said.
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