Sime may have a bullish breakout

Sime has broken above its recent high of RM12.10 (recorded on November 30) this morning when it gained 30 sen to close at RM12.30. With this breakout, Sime's uptrend is set to continue.


Chart: Sime's daily chart as at January 3 (courtesy of Quickcharts)

For traders who maybe put off by Sime's high price, they can consider Sime-CB, a CW related to Sime which was listed on December 21st. Sime-CB's main terms are:

1. Expiry Date: July 16th, 2008
2. Exercise Ratio: 10-for-1
3. Exercise Price: RM12.00

From Chart 2 below, we can see that Sime-CB has an overhead resistance at RM0.175. Traders will be watching & waiting for a break above that level before going long on this CW.


Chart: Sime-CB's daily chart as at January 3 (courtesy of Quickcharts)