Thursday, November 24, 2011

CIMB Research has technical buy on Favelle Favco at RM1.23

KUALA LUMPUR (Nov 24): CIMB Equities Research has a technical buy on Favelle Favco at RM1.23 at a price-to-book value of 0.8 times.

The research house said on Thursday that the rebound from its September's low is holding up well. It added the prices are consolidating in a triangle pattern, suggesting that there is still room to the upside.

"If the candles can continue to remain above its 200-day SMA (now at RM1.19, there is a good chance that the stock may re-rate towards the next resistance levels at RM1.32 and RM1.40.

'Technical landscape remains compelling, reinforcing our short term bullish view on the stock. MACD signal line is still hovering in the positive territory while RSI has also hooked upward," it said.

CIMB Research said that risk takers may start to nibble now while others should for a push above RM1.26 before going long. Always put a stop at below RM1.15 to limit downside risks.

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