Wednesday, October 12, 2011

CIMB Research has technical buy on Faber Group

KUALA LUMPUR: CIMB Equities Research has a technical buy call on Faber Group at RM1.46, at which it is trading at a price-to-book value of 1.2 times.

It said on Wednesday, Oct 12 that Faber is trying to swing above its resistance trend line yesterday.

'However, there seems to be some tussle here. Traders should only consider buying this stock if prices can push above its 30-day SMA (now at RM1.53),' it said.

CIMB Research said the MACD has staged a positive crossover while RSI is also rising. Trading, however, could be choppy in the immediate term as the recovery is still in its early days.

'After the 30-day SMA is taken out, we expect prices to edge closer towards RM1.61 and RM1.70. Always put a stop at below RM1.35,' it said.

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