Tuesday, June 21, 2011

CIMB Research has technical Buy on RGB Intl

KUALA LUMPUR: CIMB Equities Research has a technical Buy on RGB International Bhd at 9.0 sen at which it is trading at a price-to-book of 1.5 times.

It said on Tuesday, June 21 that RGB appears to be forming a triangle pattern here as well with prices holding above its 200-day SMA.

"Technical landscape is improving with its MACD and RSI sporting a bullish divergence against price. The flat RSI is also indicative that a base is being built."

"Traders may start to nibble now as we expect prices to trade sideways for a while longer," it said.

CIMB Research said a breakout above 9.5 sen would confirm that prices are heading higher towards RM0.115 next. The following resistance is at 15.5 sen, the February high. Cut losses quick if prices fall below 8.0 sen, which is also its 200-day SMA.

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