Thursday, August 4, 2011

CIMB Research has technical Buy on ECM Libra

KUALA LUMPUR: CIMB Equities Research has a technical Buy on ECM Libra Financial Group at 92 sen, at which it is trading at a price-to-book value of 0.8 times.

It said on Thursday, Aug 4 that it sees'' a triangle pattern forming. At the moment, prices are still holding above the moving averages, which should be viewed as a positive sign.

'Yesterday's hammer-like candle could possibly mark the final leg of its consolidation pattern. Technical landscape is improving with its MACD moving back into positive territory while its RSI is now above the 50-pts neutral mark,' it said.

CIMB Research said accumulating on weakness may be a good choice here. It expects prices to break out above the 93 sen'' resistance in the weeks ahead and take on the RM1 key resistance. Only a break below 85.5 sen would trigger its stop.

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