Wednesday, July 13, 2011

CIMB Research has technical Buy on Bertam

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on Bertam Alliance at 71 sen at which it is trading at a price-to-book value of 0.9 times.

It said on Wednesday, July 13 Bertam has been consolidating in a huge descending wedge pattern for the past few weeks.

'There is a good chance that it may have found its near term bottom at RM0.705, which is also close to its 200-day SMA,' it said.

CIMB Research said the technical landscape is improving. MACD has staged a positive crossover while RSI has also hooked upward. Follow through momentum should pick up once the RM0.74 resistance trend line is taken out.

'Traders may start to nibble now but a fall below its 200-day SMA would trigger our stop. Buy only when the RM0.74 level is taken out. The following resistance levels are RM0.785 and RM0.825,' it said.

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