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Bar g ain Bu y
Technical Research Team
Tel : (603) 9280 2584 E-mail: firstname.lastname@example.org
Chart 1: LBS Daily
Weekly Trading Idea
LBS Bina Group
Removing The Recent High Will Spell More Rallies Ahead…
M a l a s i a
M A R K E T D A T E L I N E
P P 7 7 6 7 / 0 9 / 2 0 1 1 ( 0 2 8 7 3 0 )
25 October 2010
Please read important disclosures at the end of this report.
Stock code 5789Last Close
52wk High RM0.8552wk Low RM0.405YTD Change RM0.045YTD % Chg 7.56%Trade Lot 100shrsShares out 386.6mMarket Cap RM247.4mFloat 200.0m
LBS Bina Group is amanagement and investmentholding company. It operatesproperty development andinvestment. LBS also providesproject management andcontractor services forproperty development, turf and landscaping contracting,insurance services, sells motorvehicles, and trades buildingmaterials.
*sources from Bloomberg.
RHB ResearchInstitute Sdn Bhd
A member of theRHB Banking Group
Company No: 233327 -M
LBS hit RM0.67 before closing at RM0.64 on last Friday.
The share priceof LBS accelerated in Dec 2009 after breaking out from the key level of RM0.52, and hit a high of RM0.85 in Feb 2010. However, the stock gave up allits gain by May 2010 and trended sideways near RM0.52 for the past months.In mid Oct, the stock removed the RM0.52 level and rallied to a high of RM0.67before closing at RM0.64 on last Friday, on the dot of a resistance level. Itrecorded a positive candle to shrug off the previous day’s bearish candle. Thisdisplays an optimistic sign on the share price chart.
The recent uptrend on the SMAs appeared encouraging.
Although theshort-term momentum indicators remained mixed, the recent uptrend on the10-day and 40-day SMAs appeared encouraging. If it removes RM0.64 and therecent high of RM0.67 convincingly, it will spell more rallies ahead to theRM0.75 hurdle soon. That would refresh its previous bullish trend towards theRM0.86 resistance level soon. Lower supports are seen near the 10-day SMA of RM0.57, and the crucial level at RM0.52.
Strategy: Bargain Buy for a breakout of RM0.64 soon.
Target: IR = RM0.64 R1 = RM0.75 R2 = RM0.86
Support: IS = RM0.52 S1 = RM0.40
Exit: Cut loss if it falls below the 10-day SMA near RM0.57.