CIMB Research has technical Buy on DRB-Hicom

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on DRB-HICOM BHD [] at RM2.25 at which it is trading at a price-to-book value of 0.9 times.

It said on Thursday, June 30 the pullback from the high of RM2.50 appears to be at its tail end after forming a triangle for the past two months.

CIMB Research said the prices are now sitting around its 50-day SMA and are still above its key support levels at RM2.17.

The research house said DRB-Hicom’s MACD has pulled back to its zero line while its RSI is still holding above the 40-points mark.

“We think that the stock is ready for a breakout after a two month consolidation. The next upleg should take prices to a new high of RM2.61 or RM2.80, where the former is where wave v of 5 is equal to wave i of 5 while the latter is 1.618x of wave i of 5. A drop below RM2.17 would trigger our stop,” it said.