KUALA LUMPUR: CIMB Retail Research said there is more upside for EP Manufacturing and has a Buy at 51 sen. Its FY11P/E is at 4.9 times and P/BV 0.4 times.

The research house said on Thursday, June 24 the stock broke out of its triangle resistance on Wednesday. The run-up also took out its key moving averages along the way. This should pave way for more upside ahead. Immediate resistance is at 54.5 sen while further gains should reach 56 sen and 60 sen.

?Indicators look compelling at current levels. MACD is about to turn positive while its RSI is rising towards the upper band of the neutral zone.

?Risk takers may start to nibble now. However, always put a stop at 50 sen (support trend line) or 44.5 sen (May 26 low) depending on one?s risk appetite. Falling below RM0.445 will eliminate our bullish view,? it said.

EP Manufacturing makes engineering plastic products, moulds, dies, and bicycles. EP Manufacturing also assembles lamps and switches, and markets bicycles.