Monday, September 26, 2011

CIMB Research has technical buy on United U-Li

KUALA LUMPUR: CIMB Equities Research has a technical buy on United U-Li at 84.5 sen at which it is trading at a price-to-book value of 0.7 times.

The research house said on Monday, Sept 26 United U-Li violated its triangle support last week. The correction was sharp and pushed prices to a low of 75.5 sen before the bulls started to make a comeback.

'While it may be too early to conclude that the downtrend is over, risk takers may consider taking some position here as we expect prices to bounce towards 90 sen in the near term. If this level is taken out, the following resistance level is at 98 sen,' it said.

CIMB Research said the formation of two white candles in a row suggests that the stock may have found its near term bottom. This is also supported by the improving technical landscape.

'Despite the short term positive, traders should place a stop at below 80.5 sen. A slip below 75.5 sen indicates that the downtrend is not over yet,' it said.

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