Friday, November 11, 2011

CIMB Research has technical buy on DPS

KUALA LUMPUR (Nov 11): CIMB Equities Research has a technical buy on DPS RESOURCES BHD [] at 12.5 sen at which it is trading at a price-to-book value of 12.5 sen.

It said on Friday DPS saw a surge in trading volume on Thursday, taking prices further away from its 200-day SMA. With the pick up in volume, it expects prices to climb further in the coming days.

'The 14 sen to 14.5 sen resistance is likely to be tested soon. A breakout above the 14.5 sen resistance on strong volume would likely send prices shooting higher, targeting the 17 sen mark,' it said.

CIMB Research said the technical landscape is improving with its MACD doing a rollover and its RSI had also hooked upwards once more.

'And since its RSI is not yet overbought, there is still room on the upside. The stock is a buy now with a stop placed below yesterday's low of 10.5 sen,' it said.

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