Monday, November 21, 2011

CIMB Research has technical buy on KPJ Healthcare

KUALA LUMPUR (Nov 21): CIMB Equities Research has a technical buy on KPJ Healthcare at RM2.46 at which it is trading at a price-to-book value of 3.0 times.

It said on Monday that KPJ Healthcare broke out of its medium term downtrend channel on Friday.

'We believe that the stock is ripe for a stronger rebound. If prices can continue to hold on above the RM4.20 level, the next upswing is going to lift prices towards RM4.39 and RM4.55,' it said.

CIMB Research said the technical landscape is improving. MACD signal line has staged a positive crossover while RSI is also rising.

'Traders may start to nibble now to ride on this breakout run. However, always put a stop at below RM4.20-RM4.13 to keep loss tight,' it said.

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