Friday, July 1, 2011

CIMB Research keeps technical Buy on Wah Seong

KUALA LUMPUR: CIMB Equities Research retains its Buy call on Wah Seong Corporation at RM2.45, at which it is trading at a FY12P/E of 12.9 times and price-to-book value of 1.9 times.

It said on Friday, July 1 that the share price, after pushing past the triangle resistance, rallied to a high of RM2.45 before selling pressure set in. Current, prices are consolidating in a sideways channel.

'As long as prices hold on steady above the RM2.33 level, we think the bulls have the upper hand here. Therefore, our strategy here is to buy on weakness. Alternatively, one can buy after prices swing past the RM2.45 high,' it said.

CIMB Research said for risk takers, they may take some positions here ahead of the breakout. The following resistance levels are RM2.59 and RM2.71.

It added the MACD is still in consolidation mode but RSI has hooked upward. The 30-day SMA may also offer some support to prices.

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