Thursday, October 20, 2011

CIMB Research has technical buy on Scomi Group

KUALA LUMPUR: CIMB Equities Research has a technical buy on Scomi Group at 29 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Thursday, Oct 20 Scomi Group is still consolidating in a huge descending wedge pattern.

'Looking at the chart, we think a short term bottom may have formed near the 25 sen low,' it said.

CIMB Research said aggressive traders may start to accumulate now while others should wait for a push above its 200-day SMA before going long. Buying momentum should pick up when prices push above the resistance channel, now at 30.5 sen.

'As long as prices hold on above the 25 sen low, we think the bulls have the upper hand. Once the RM level is taken out, prices should re-rate towards 32.5 sen and 36 sen next,' it said.

No comments:

Post a Comment