Tuesday, November 1, 2011

CIMB Research has technical buy on Unisem

KUALA LUMPUR (Nov 1): CIMB Equities Research has a technical buy on Unisem Corp Bhd at Rm1.26 at which it is trading at a FY12 price-to-earnings of 9.7 times and price-to-book value of'' 0.8 times.

It said on Tuesday that Unisem broke out of its flag channel on Monday and this was a prelude to more upside ahead.

'If prices can continue to hold on above the resistance-turned-support trend line, there is a good chance that the stock may re-rate towards RM1.36 and possibly even RM1.43 next,' it said.

CIMB Research said the technical indicators remain undemanding. MACD signal line has returned to the black while RSI is above the 50pts mark.

Buy on pullback looks like a good option here. However, always put a stop at RM1.19-RM1.13 to limit downside risk.

No comments:

Post a Comment