You may buy Utama on weakness if the share can hold above the breakout level of RM2.43/45.
Chart 1: Utama's daily chart as at March 30
If you find that the share price of Utama has gone up too much & may pose high risk, then you may like to look at its holding company i.e. CMSB. CMSB has a 51.83% stake in UBG, which in turn holds 32.87% of RHB. RHB has a 64.87% stake in RHB Cap, which in turn owns 70% of RHB Bank Bhd. As you may recall, RHB was the target of takeover by Kuwait Finance House, EPF & Primus, which was only recently concluded with Utama selling its stake in RHB to EPF for a cash consideration of RM2.253 billion.
From the chart below, you can see that CMSB is poised to breakout of its ascending triangle pattern at the RM2.07/10 level. If it can breakout successfully, it may test its recent high of RM2.17 & thereafter the RM2.25-35 congestion area.
Buy CMSB only if it can breakout of the RM2.07/10 resistance successfully.
Chart 2: CMSB's daily chart as at March 30
Note: This is strictly a technical call without any consideration of the company's financial performance.
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