KUALA LUMPUR: CIMB Equities Research has a Buy on MUDAJAYA GROUP BHD  at RM4.51 where it is trading at FY12 price-to-earnings of 5.8 times and a price-to-book value of 2.6 times.
It said on Thursday, May 5 the stock appears to be on its last leg of a huge triangle consolidation pattern. Prices are also now testing the 200-day SMA at RM4.56. As long as prices remain above the RM4.42 levels, the triangle pattern holds.
CIMB Research said the technical indicators are still in consolidaiton mode. MACD is still trickling lower while RSI is also on an easing trend.
“A breakout above RM4.78, its 30-day SMA would likely signal that the bulls are back in business. For now, aggressive traders may opt to buy on weakness with a stop placed below RM4.40. Upside resistance is seen around RM5.05, the triangle resistance and RM5.44,” it said.
Written by theedgemalaysia.com