Utama's uptrend may continue

Utama has broken above its horizontal resistance of RM2.43/45 on Friday (March 30). Its immediate resistance is at the psychological RM3.00 level. Thereafter, it may test its February 2000 high of RM3.82.

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.