KUALA LUMPUR: CIMB Equities Research has a Buy on Scomi Group at 40 sen as it sees the correction is at its tail end.
"Scomi is still gyrating in a descending wedge pattern. Although prices have been making lower lows formation over the past few months, it seems that the correction is probably at its tail end.
"A breakout above its 50-day SMA (at RM0.415) would likely indicate that a stronger rebound is underway," it said on Monday, April 5.
CIMB Research said despite the share price weaknesses, it sees a bullish divergence in its MACD indicators. This suggests that selling pressure is tapering off. Also, its RSI has started to hook upward.
Traders with greater risk appetite may get in now in anticipation of a breakout run. Once the 50-day SMA is overcome, next upside targets are 43 sen and 46 sen. However, keep stop tight at 38 sen.
Scomi Group sells drilling mud and chemical products, provides drilling fluids materials, equipment, and services, manufactures and fabricates road transport equipment and material handling equipment, operates marketing agent for road transport equipment, and provides leasing on motor vehicles.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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