KUALA LUMPUR: CIMB Equities Research has a technical Buy on Daya Material Bhd at 20 sen, at which it is trading at a price-to-book value of 1.2 times.
It said on Monday, Aug 1 that Daya has been consolidating in a bullish wedge pattern for the past few weeks.
'Selling pressure is diminishing and we expect a technical rebound soon. The next upleg would likely push prices towards 22 sen and 24.5 sen next. Thereafter, the 26.5 sen level is the next target to beat,' it said.
CIMB Research said MACD was still in the red but the positive divergence indicated that the bulls were slowly making a comeback. RSI has also bounced off its lows.
'Although we could not write off the possibility of further consolidation, we think the risk-reward matrix favours the bulls. Hence, traders may start to nibble now. Only a fall below 19.5 sen would trigger our stop,' it said.
CIMB Research described Daya Materials as an oil & gas company and the group provides oil and gas products and services, specialty chemicals, advanced polymers, and technical services.
It produces and markets downstream chemicals, and also provides engineering and CONSTRUCTION [], specialised lifting and material handling services to the oil & gas industry.
It said on Monday, Aug 1 that Daya has been consolidating in a bullish wedge pattern for the past few weeks.
'Selling pressure is diminishing and we expect a technical rebound soon. The next upleg would likely push prices towards 22 sen and 24.5 sen next. Thereafter, the 26.5 sen level is the next target to beat,' it said.
CIMB Research said MACD was still in the red but the positive divergence indicated that the bulls were slowly making a comeback. RSI has also bounced off its lows.
'Although we could not write off the possibility of further consolidation, we think the risk-reward matrix favours the bulls. Hence, traders may start to nibble now. Only a fall below 19.5 sen would trigger our stop,' it said.
CIMB Research described Daya Materials as an oil & gas company and the group provides oil and gas products and services, specialty chemicals, advanced polymers, and technical services.
It produces and markets downstream chemicals, and also provides engineering and CONSTRUCTION [], specialised lifting and material handling services to the oil & gas industry.
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