Thursday, December 15, 2011

CIMB Research has technical buy on KBB Resources at 33.5 sen

KUALA LUMPUR (Dec 15): CIMB Equities Research has a technical buy on KBB Resources at 33.5 sen at which it is trading at a price-to-book value of 1.2 times.

The research house said on Thursday KBB Resources broke out of its downtrend channel on Tuesday.

'Hence, we think there is a good chance that prices may re-rate towards 38 sen soon. The following resistance targets are 40.5 sen and 44 sen,' it said.

CIMB Research said the MACD had returned to the black while RSI was above the 50pts mark.

'The positive technical landscape reinforces our positive stance on the stock. Traders may start to accumulate now. However, always put a stop at 34.5 sen to 31.5 sen depending on one risk's appetite,' it said.

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