Wednesday, October 5, 2011

CIMB Research has technical buy on Hap Seng

KUALA LUMPUR: CIMB Equities Research has a technical buy call on Hap Seng Consolidated at RM1.28 at which it is trading at a price-to-book value of 0.9 times.

It said on Wednesday, Oct 5 that the recent correction was steep. However, a base may have been formed near the RM1.25 lows.

'If the candles can swing past the 30-day SMA, we think the stock is poised for a stronger rebound,' it said.

CIMB Research said risk takers may consider taking some position here while others should wait for a swing above its 30-day SMA before going long. The next upswing is going to lift prices towards RM1.35 and RM1.45.

'Technical landscape is improving. The bullish divergence on its MACD indicator shows that the bulls are making a comeback while RSI has also bounced its lows. Always put a stop at below RM1.25,' it said.

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