Friday, December 2, 2011

CIMB Research has technical buy on 1 Utopia at 9 sen

KUALA LUMPUR (Dec 2): CIMB Equities Research has a technical buy on 1 Utopia at 9.0 sen at which it is trading at a price-to-book value of 0.7 times.

It said on Friday 1 Utopia is trying to penetrate the triangle resistance. If it succeeds, there is a good chance that prices may re-rate towards 11 sen and 14 sen.

'However, only risk takers should look at this stock due to its penny-nature. Expect great volatility,' it said.

CIMB Research said the MACD is poised for a positive crossover, suggesting that the bulls are slowly making a comeback. RSI too has hooked upward. These positive readings further reinforce our short term positive view on the stock.

'As long as prices stay above the 7.5 sen levels, we will continue to stick with the bull's camp. However, traders may want to put a stop at between 8.0 sen and 7.5 sen depending on one's risk appetite,' it said.

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