Thursday, September 22, 2011

CIMB Research has technical buy on Tenaga

KUALA LUMPUR: CIMB Equities Research has a technical buy on TENAGA NASIONAL BHD [] at'' RM5.12 at which it is trading at a FY12 price-to-earnings of 13.5 times and price-to-book value of 1.0 times.

It said on Thursday, Sept 22 that Tenaga National is still trapped in a downtrend channel but there is a good chance that prices may have found its near term bottom at RM5.01.

'If we are right, prices should start to rebound any time soon, possibly towards RM5.37 and RM5.70 next,' it said.

CIMB Research said aggressive traders may start to nibble now as it believes the risk-reward favours the bulls. Others should wait for a swing above the resistance channel before going long. Always place a stop at below RM5.00.

It said the MACD has staged a positive crossover while RSI is also rising. This reinforced its view that the RM5.01 low is likely the near term bottom.

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