CMSB (2852) - CMSB: Next Upleg Has Just Begun
In early December, I posted on the rebound in earning for CMSB (here). The improved earning - due to a turnaround in its associate OM Material - led to a rally that propelled the stock to break above its downtrend line slowly climbed up to around RM3.80-3.90.
Chart 1: CMSB's daily chart as at Jan 18, 2017_10.45am (Source: TradingView.com)
Yesterday CMSB broke above the strong horizontal line, AB at RM4.00 on big volume. This morning, we saw a follow-thru in the buying which led to further increase in the share price.
Chart 2: CMSB's weekly chart as at Jan 18, 2017_10.45am (Source: TradingView.com)
I believe that this could be the beginning of the next upleg for CMSB as the market anticipates higher earnings from the Group from higher contribution from OM Material as well as its cement & other building material divisions due to the start of the Pan Borneo Highway. Based on technical breakout, CMSB is a good trading BUY, with immediate resistance at RM4.70, RM5.00 7 RM5.40. However, CMSB is also a good stock to consider for long-term investment due to its exposure to the growing Sarawak economy.
Note:
I hereby confirm that I do not have any direct interest in the security or
securities mentioned in this post.
However, I could have an indirect interest in the security or securities
mentioned as some of my clients may have an interest in the acquisition or
disposal of the aforementioned security or securities. As investor, you should fully research any
security before making an investment decision.
CMSB (2852) - CMSB: Next Upleg Has Just Begun
http://nexttrade.blogspot.my/2017/01/cmsb-next-upleg-has-just-begun.html
