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Sunday, June 5, 2011

CIMB Research sees Lingui due for stronger rebound

KUALA LUMPUR: CIMB Equities Research has a Buy on Lingui Developments as the technical landscape for its share price is improving.

It said on Friday, April 22 that Lingui hit a new 52-week high of RM2.11 on 7 April before profit taking set in.

The pullback dragged prices towards the 38.2% FR level, fulfilling the minimum retracement target.

“Looking at the chart, we think the stock is due for a stronger rebound,” it said.

CIMB Research said the technical landscape is improving. MACD histogram bars are falling at a slower pace while RSI has also hooked upward.

It said traders may start to nibble now. Only a fall below RM1.78 would trigger our stop. Meanwhile, resistances are RM2.11 and RM2.25.

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