KUALA LUMPUR: CIMB Equities Research has a technical buy call on Malaysia Steel Works KL at RM1.05 at which it is trading at a price-to-book value of 0.4 times.
It said on Wednesday, Oct 12 Malaysia Steel Works looks set to break out of its medium term resistance trend line on Tuesday.
Risk takers may start to take some positions here while others should wait for a push above RM1.08 before going long.
Once the RM1.08 level is taken out, the following resistance levels are RM1.13 and RM1.20. The 200-day SMA at RM1.21 is also a magnet for prices.
'The bullish divergence on its MACD suggests that selling pressure has tapered off. RSI too has hooked upward. These positive technical readings reinforce our short term bullish stance on the stock.
CIMB Research said traders should adopt tight stop loss strategy. Be quick to trim loss if the candles break below the RM1.00-0.97 levels.
A fall below RM0.92 would signal that the correction from its April high is not over yet, it said.
It said on Wednesday, Oct 12 Malaysia Steel Works looks set to break out of its medium term resistance trend line on Tuesday.
Risk takers may start to take some positions here while others should wait for a push above RM1.08 before going long.
Once the RM1.08 level is taken out, the following resistance levels are RM1.13 and RM1.20. The 200-day SMA at RM1.21 is also a magnet for prices.
'The bullish divergence on its MACD suggests that selling pressure has tapered off. RSI too has hooked upward. These positive technical readings reinforce our short term bullish stance on the stock.
CIMB Research said traders should adopt tight stop loss strategy. Be quick to trim loss if the candles break below the RM1.00-0.97 levels.
A fall below RM0.92 would signal that the correction from its April high is not over yet, it said.
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