Tuesday, June 21, 2011

RGB International active, up

KUALA LUMPUR: RGB International Bhd shares were actively traded on Tuesday, June 21 while CIMB Equities Research had a technical Buy on the stock at 9.0 sen. At 9.50am, RGB rose one sen to 10 sen with 5.3 million shares done. In its technical outlook, CIMB Research said the stock appeared to be forming a triangle pattern with prices holding above its 200-day SMA. Its technical Buy was at 9.0 sen at which it is trading at a price-to-book of 1.5 times.

"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.

It said traders should cut losses quick if prices fall below 8.0 sen, which is also its 200-day SMA.

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