Sime has broken above the psychological RM10.00 mark today (see Chart 1). Sime has been range-bound between RM8.00 & RM10.00 for the past 2 & 1/2 years (see Chart 2). With this breakout, Sime could commence on its long-awaited upleg. Potential target is RM12.00, with resistance in between at RM10.80 & RM11.50.
Based on this technical breakout, Sime could be a trading BUY.
Chart 1: Sime's daily chart as at Mar 2, 2012_12.00pm (Source: Quickcharts)
Chart 2: Sime's weekly chart as at Feb 27, 2012 (Source: Tradesignum)
The FBM KLCI climbed 17.87 points, or 1.17 per cent, last week to 1,538.77, with Sime Darby (+39 sen), Public Bank (+32 sen), Digi.Com (+16 sen), CIMB Group Holdings (+15 sen) and Petronas Gas (+RM1) contributing to most of the index's gain. Average daily traded volume and value improved to 2.38 billion shares worth RM2.3 billion respectively, from 1.86 billion shares and RM1.69 billion in the previous week, as trading momentum improved given the strong retail interest in lower liners and their call warrants.
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