CIMB Research maintains Technical Buy on Wijaya Baru

KUALA LUMPUR: CIMB Equities Research is maintaining its Technical Buy on Wijaya Baru Global at 68 sen at which it is trading at a price-to-book value of 0.7 times.

The research house said on Monday, Aug 15 that since it featured Wijaya Baru as a technical sell stock on Aug 5, prices plunged to a low of 52 sen before buying momentum started to set in again.

Last Friday, the candles bounced back above its 30-day SMA, suggesting that a near term bottom may have been formed.

“Traders with higher risk appetite may start to nibble now as we expect prices to swing closer towards 69 sen and 72.5 sen next. If these levels are breached, prices could even retest the 78.5 sen high.

“Technical landscape is improving, reinforcing our short term bullish view on the stock. MACD is falling at a slower pace while RSI has hooked upward. Only a break below 60 sen would trigger our stop,” it said.