Thursday, November 10, 2011

CIMB Research has technical buy on Scomi Group

KUALA LUMPUR (Nov 10): CIMB Equities Research has a technical buy on Scomi Group at 30 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Thursday that Scomi Group tried to break out of its huge descending wedge pattern yesterday but selling pressure was strong.

'This breakout could still take place as long as prices can hold above its moving averages at 28 sen,' it said.

CIMB Research said aggressive traders may buy on weakness with a stop placed below RM0.28. Others should wait for a close above its 200-day SMA before going long. Buying momentum should pick up given the rise in trading volume recently.

'Anything above 28 sen would keep the odds in favour of the bulls. On the upside, prices should re-rate towards 33.5 sen and 36.5 sen to 38 sen next,' it said.

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