Friday, July 8, 2011

CIMB Research has Buy on Sapura Resources at RM1.18

KUALA LUMPUR: CIMB Equities Research has a technical Buy on Sapura Resources at RM1.18 at which it is trading at a price-to-book value of 0.5 times.

It said on Friday, July 8 that Sapura Resources after breaking out of its triangle pattern, the share price is building a base above its 200-day SMA.

'We see this as a prelude to more upside ahead. The next upswing to test the RM1.25 and RM1.38 resistances,' it added.

CIMB Research said the MACD histogram bars continue to gain strength, suggesting that there is more room to the upside. RSI too is rising.

'As long as prices stay above the 200-day SMA (now at RM1.08), we would continue to stick with the bull's camp. Only a fall below RM1.06 would trigger our stop,' it said.

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