Mar 20, 2013

Chemical Company of Malaysia

CCM stock code 2879

below: CMM Daily Chart (click to enlarge)

Not too long ago, we recommended that traders TAKE  PROFIT on CCM's stock following a furious four-day run-up that saw the share price advance 16.7% from RM1.08 (report dated 7th March) to RM1.26 (11th Mar). Our decision to cash in the chips turned out well, and the share price subsequently corrected to recent low of RM1.14.

Yesterday, the CCM had yet again presented to us a 'buy' signal. The share price has broken out of a "Bullish Flag" formation, which signals a continuation of the prior uptrend. Trading volume was also higher, and we reckon that the share price is poised for further gains towards the RM1.28/30 resistance level, and potentially the "Flag-pole" measurement objective at RM1.60 (Target  3 bids lower at RM1.57). Traders looking to buy into the stock should also place a stop-loss at RM1.11.

by Kenanga Research