CIMB Research has technical buy on Digistar

KUALA LUMPUR: CIMB Equities Research has a technical buy call on Digistar Corporation at 42 sen at which it is trading at a price-to-book value of 1.9 times.

It said on Thursday, Oct 13 Digistar is still trapped in a downtrend channel but a short term bottom may have formed at 36 sen.

“If the candles can push above its 50-day SMA, there is a good chance that prices may re-rate towards 45 sen. The following resistance levels are 48.5 sen and 53.5 sen,” it said.

CIMB Research said the technical landscape is improving. MACD histogram bars have turned positive while RSI has also hooked upward.

“However, to prevent a bull’s trap, traders should wait for a push above 43 sen (yesterday’s high) before going long. If this level is not taken out over the next few days, then prices could possibly fall back to retest the 36 sen low again,” it said.