Friday, September 9, 2011

CIMB Research has technical buy on Berjaya Food

KUALA LUMPUR: CIMB Equities Research has a technical buy on Berjaya Food at 85.5 sen at which it is trading at a price-to-book value of 2.4 times.

It said on Friday, Sept 9 Berjaya Food is still trading in a triangle pattern. The sideways consolidation took longer than expected but it still thinks the next leg is more likely to rise than fall.

'In view of the favourable risk to return profile, we think traders should do well taking some position now. Technical landscape is progressing well. MACD is slowly gaining strength while RSI is also above the 50pts mark,' it said.

CIMB Research said once the 88 sen level is taken out, prices should edge closer towards 93.5 sen and 96.5 sen next. Stay invested unless prices fall below the 82 sen level.

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