Wednesday, June 8, 2011

CIMB Research has Buy on MBM Resources at RM3.13

KUALA LUMPUR: CIMB Equities Research has a Buy on MBM RESOURCES BHD [] at RM3.13, which is 0.7 times to its price-to-book value.

It said on Wednesday, June 8 that MBM hit a low of RM2.94 before buying support set in. The bulls were rather strong here, lifting its candles above the 30-day and 50-day SMAs, it added.

'Looking at the chart, we think this uptrend still has legs. The stock should take out its 200-day SMA soon. As soon as the 200-day SMA is taken out, prices will likely fill the RM3.15-RM3.20 gap. The following resistance levels are RM3.34 and RM3.45,' it said.

CIMB Research said aggressive traders may start to nibble now ahead of the breakout. MACD remains positive while RSI is also rising. Always put a stop at below RM3.05. A fall below the RM2.94 low would negate this positive momentum.

1 comment: