Wednesday, November 16, 2011

CIMB Research has technical buy on Bumi Armada at RM3.83

KUALA LUMPUR (Nov 16): CIMB Equities Research has a technical buy on Bumi Armada ''at RM3.83, at which it is trading at a price-to-book value of 6.5 times.

It said on Wednesday Bumi Armada is poised for a stronger rebound. If prices can swing past the resistance trend line and subsequently its previous swing high of RM3.92, there is a good chance that prices may edge closer towards RM4.03 and RM4.17.

'MACD signal line is hovering in the positive territory while RSI is also above the 50pts mark. We are also encouraged by the fact that its 30-day SMA has cut above the longer term 50-day SMA.

'Risk takers may start to nibble now ahead of the breakout run while others should accumulate only when the RM3.92 level is taken out. Only a fall below RM3.62 would trigger our stop,' it said.

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