Wednesday, August 3, 2011

CIMB Research has technical Buy on Dijaya

KUALA LUMPUR: CIMB Research has a technical Buy on Dijaya Corporation at RM1.54 at which it is trading at a price-to-book value of 0.8 times.

It said on Wednesday, Aug 3 that it seems that Dijaya has broken out of its bullish flag pattern on Tuesday.

'The candles also took out its 30-day SMA along the way. Looking at the chart, we think this rebound still has legs,' it said.

CIMB Research said the technical landscape is improving. MACD is poised for a positive crossover while RSI has also turned upward. The next upswing should push prices towards RM1.62 and RM1.71 next.

'Only risk takers should look at this stock as the recovery is still in its early stage. Be quick to cut loss if the RM1.43-RM1.41 levels are violated,' it said.

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