Monday, July 25, 2011

CIMB Research has technical Buy on Scomi

KUALA LUMPUR: CIMB Research has a technical Buy on Scomi Group Bbhd at 33 sen at which it is trading at a price-to-book value of 0.5 times.

It said on Monday, July 25 Scomi has rebounded a tad higher after it featured the stock as a technical buy stock on 2nd June 2011.

'Looking at the chart, we think there is still room to the upside as prices are still trading in a bullish wedge pattern,' it said.

CIMB Research said the echnical landscape remains compelling. The bullish divergence on its MACD indicator suggests that the bulls are making a comeback while RSI has also hooked upward.

'Traders may start to nibble now with a stop placed below its previous swing low of 29.5 sen. On the upside, resistance is seen at 34.5 sen, 36.5 sen and 39 sen,' it said.

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