CIMB Research has technical buy on KPS

KUALA LUMPUR: CIMB Equities Research has a technical Buy on KUMPULAN PERANGSANG SELANGOR [] (KPS) at RM1.06 at which it is trading at a price-to-book value of 0.5 times.

CIMB Research said on Thursday, July 21 the downtrend from the RM1.54 high could be coming to an end soon.

“Prices have been forming a bulish wedge pattern, which suggests that the next big move is likely to up,” it said.

The research house said the MACD was still negative while its RSI is also trending lower. Nevertheless, both indicators have a good chance of forming a triple bullish divergence signal.

“Coupled with the bullish wedge pattern, we think that the stock is a good buy on weakness. Wait for a fall into the RM1.00-1.05 levels to buy and place a risk management stop loss point below RM0.97. If prices can hold above the RM1.00 mark, then it is likely to rebound towards RM1.16 and RM1.27 next,” it said.