KUALA LUMPUR: CIMB Equities Research has a technical Buy on JCY International Bhd at 52.5 sen at which it is trading at a FY12 price-to-earnings of 6.1 times and price-to-book value of 1.2 times.
It said on Tuesday, Aug 2 that JCY appears to be at its final thrust lower, completing a 5 wave move from the 83 sen high in April. Prices formed a doji pattern on rising volume, which could potentially be a reversal signal.
'If we see a bullish white candle today, it could confirm the reversal is taking place. Its indicators show triple bullish divergence signals, which would suggest that the selling pressure has hit a plateau. The oversold RSI is also likely to prompt bargain hunting on the stock soon,' it said.
CIMB Research said aggressive traders may go long now with a stop placed below the 50 sen psychological mark. A break above 54.5 sen would likely be a good signal to suggest that a new rally has begun.
'We expect prices to take out the moving averages in the short term, targeting 67.5 sen,' it said.
It said on Tuesday, Aug 2 that JCY appears to be at its final thrust lower, completing a 5 wave move from the 83 sen high in April. Prices formed a doji pattern on rising volume, which could potentially be a reversal signal.
'If we see a bullish white candle today, it could confirm the reversal is taking place. Its indicators show triple bullish divergence signals, which would suggest that the selling pressure has hit a plateau. The oversold RSI is also likely to prompt bargain hunting on the stock soon,' it said.
CIMB Research said aggressive traders may go long now with a stop placed below the 50 sen psychological mark. A break above 54.5 sen would likely be a good signal to suggest that a new rally has begun.
'We expect prices to take out the moving averages in the short term, targeting 67.5 sen,' it said.
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