Tuesday, January 3, 2012

CIMB Research has technical buy on Rimbunan Sawit at 92.5 sen

KUALA LUMPUR (Jan 3): CIMB Equities Research has a technical buy on Rimbunan Sawit at 92.5 sen at which it is trading at a price-to-book value of 0.8 times.

It said on Tuesday the share price of the PLANTATION [] company broke out of its consolidation triangle pattern on Friday.

'We think the stock is ripe for a stronger rebound. If we are right, there is a good chance that prices may charge towards 95.5 sen over the next few days. The following resistance levels are RM1.00 and RM1.04,' it said.

CIMB Research said the technical landscape remains conducive. MACD signal line is poised for a positive crossover while RSI has begun to hook upward. The 30-day SMA (now at RM0.88) could also offer some support to prices.

'Aggressive traders may start to nibble now. However, always place a stop at between 90.5 sen to 87 sen. A break below 83 sen would indicate that the uptrend from its April 2011 low is likely over,' it said.

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