KUALA LUMPUR: Shares of Supermax and Top Glove rose in early trade on Thursday, July 7 after CIMB Research rated both the stocks as technical Buys.
At 9.35am, Supermax rose seven sen to RM3.87 while Top Glove added four sen to RM5.48.
CIMB Research has a technical Buy on Supermax Corp at RM3.80 at which it is trading at a FY12P/E of 8.3 times and price-to-book value of 1.8 times.
The research house said on Thursday, July 7 that since its previous call on Supermax on June 2, prices have rebounded to a high of RM4.00 before succumbing to profit taking.
However, Wednesday's long white candle on rising volume may be a sign that the bulls are ready to kick start another rally.
'With both the indicators reconfirming their buy signals, we think that there is a good chance of a decent rally in the near term,' it said.
It said traders may opt to buy now with a stop placed below the recent low of RM3.70. They could also place their stop below the RM3.60 mark. A push past the recent RM4.00 high is likely to send prices shooting towards its 200-day SMA at RM4.20 next. It also has potential to reach as high as RM4.52 in the longer term.
Meanwhile, CIMB Research has a technical Buy on Top Glove Corporation at RM5.44 at which it is trading at a FY12P/E of 17.0 times and price-to-book value of 3.1 times.
It said Top Glove broke out of its consolidation triangle on Wednesday. Although prices pulled back a tad at the close, prices remained above the triangle resistance turned support level of RM5.38.
'Both indicators are rising, supporting a positive outlook for the stock in the near term. The RSI has yet to reach the overbought region, suggesting that there is still room on the upside.
'Traders should jump in and buy now to try to ride on this breakout run. We expect prices to nudge higher towards RM5.87-RM6 once the RM5.58 minor resistance gives way. Only a fall below the RM5.24 support would trigger our stop loss,' it said.
At 9.35am, Supermax rose seven sen to RM3.87 while Top Glove added four sen to RM5.48.
CIMB Research has a technical Buy on Supermax Corp at RM3.80 at which it is trading at a FY12P/E of 8.3 times and price-to-book value of 1.8 times.
The research house said on Thursday, July 7 that since its previous call on Supermax on June 2, prices have rebounded to a high of RM4.00 before succumbing to profit taking.
However, Wednesday's long white candle on rising volume may be a sign that the bulls are ready to kick start another rally.
'With both the indicators reconfirming their buy signals, we think that there is a good chance of a decent rally in the near term,' it said.
It said traders may opt to buy now with a stop placed below the recent low of RM3.70. They could also place their stop below the RM3.60 mark. A push past the recent RM4.00 high is likely to send prices shooting towards its 200-day SMA at RM4.20 next. It also has potential to reach as high as RM4.52 in the longer term.
Meanwhile, CIMB Research has a technical Buy on Top Glove Corporation at RM5.44 at which it is trading at a FY12P/E of 17.0 times and price-to-book value of 3.1 times.
It said Top Glove broke out of its consolidation triangle on Wednesday. Although prices pulled back a tad at the close, prices remained above the triangle resistance turned support level of RM5.38.
'Both indicators are rising, supporting a positive outlook for the stock in the near term. The RSI has yet to reach the overbought region, suggesting that there is still room on the upside.
'Traders should jump in and buy now to try to ride on this breakout run. We expect prices to nudge higher towards RM5.87-RM6 once the RM5.58 minor resistance gives way. Only a fall below the RM5.24 support would trigger our stop loss,' it said.
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