Thursday, October 20, 2011

CIMB Research has technical buy on Latexx

KUALA LUMPUR: CIMB Equities Research has a technical buy on Latexx Partners at RM1.49 at which it is trading at a FY12 price-to-earnings of 4.8 times and price-to-book value of 1.2 times.

It said on Thursday, Oct 20 the recent rebound lifted Latexx above its 30-day SMA. Since then, prices have been consolidating in a bullish flag pattern.

'We are of the opinion that this upswing can be extended. If we are right, prices should take out the 50-day SMA soon, before charging towards RM1.56 and RM1.68 next,' it said.

CIMB Research said the MACD signal line has turned flattish, reflecting its earlier consolidation mode. Meanwhile, RSI is above the 50pts mark.

'Risk takers may consider taking some position now ahead of the breakout run. Be quick to cut loss if the RM1.42 level is violated,' it said.

No comments:

Post a Comment