Chart 1: CMSB's daily chart as at Jan 18, 2017_10.45am (Source: TradingView.com)
Yesterday CMSB broke above the strong horizontal line, AB at RM4.00 on big volume. This morning, we saw a follow-thru in the buying which led to further increase in the share price.
Chart 2: CMSB's weekly chart as at Jan 18, 2017_10.45am (Source: TradingView.com)
I believe that this could be the beginning of the next upleg for CMSB as the market anticipates higher earnings from the Group from higher contribution from OM Material as well as its cement & other building material divisions due to the start of the Pan Borneo Highway. Based on technical breakout, CMSB is a good trading BUY, with immediate resistance at RM4.70, RM5.00 7 RM5.40. However, CMSB is also a good stock to consider for long-term investment due to its exposure to the growing Sarawak economy.