Tuesday, December 6, 2011

CIMB Research has technical buy on K. Euro at RM1.06

KUALA LUMPUR (Dec 6): CIMB Equities Research has a technical buy on Kumpulan Europlus at RM1.06 at which it is trading at a price to book value of 5.4 times.

It said on Tuesday that Kumpulan Europlus is still trading within its consolidation triangle pattern. If prices can continue to hold above its 30-day and 50-day SMAs, then a breakout to higher levels is likely.

'Technical landscape is neutral with both the MACD and RSI showing little signs of life, which is in line with the triangle view.

'Since the prior trend before the triangle is up, the odds favour the bulls here. Buy now with a tight stop placed below RM1.01. The likely breakout could send prices shooting towards RM1.18 and RM1.20 next,' it said.


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