KUALA LUMPUR: CIMB Equities Research has a technical Buy on Press Metal at RM2.28, at which it is trading at a price-to-book value of 1.2 times.
It said on Thursday, July 21 Press Metal could be consolidating within a triangle pattern with the current downleg as the terminal move to conclude this consolidation pattern.
'If this is the case, the prices could soon embark on a strong rally. Indicators are showing signs of weakness, which is in line with the final leg lower.
'We think that the stock is likely well supported above its 200-day SMA at RM2.25,' it said.
CIMB Research said traders could opt to buy on weakness with a stop placed below RM2.16. A breakout above RM2.43 would mean that the rally is indeed taking place, targeting RM2.65 and RM2.80 next.
It said on Thursday, July 21 Press Metal could be consolidating within a triangle pattern with the current downleg as the terminal move to conclude this consolidation pattern.
'If this is the case, the prices could soon embark on a strong rally. Indicators are showing signs of weakness, which is in line with the final leg lower.
'We think that the stock is likely well supported above its 200-day SMA at RM2.25,' it said.
CIMB Research said traders could opt to buy on weakness with a stop placed below RM2.16. A breakout above RM2.43 would mean that the rally is indeed taking place, targeting RM2.65 and RM2.80 next.
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