Dukang Distillers: CIMB has Technical Buy Call. House note that after the completion of a 5-wave move down from S$0.935 to S$0.35, believe that the stock is now undergoing a corrective rebound. This rebound has only just begun and still has got legs despite yesterday’s move above its moving averages.
Technical landscape also looks appealing with both its MACD and RSI sporting bullish divergences. The RSI has also hooked up sharply, which suggests that there was a boost in buying momentum. Yesterday’s spike in trading volume enhances view that prices are likely at the beginning of a new run i.e. its corrective rebound.
Aggressive buyers should get in to buy now as the downside risk is very low at the moment. Keep a stop placed below the recent low of $0.35. One can also place their stop below $0.38. Expect prices to rally towards the strong resistance band of $0.535-0.62. Its 38%.
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