Chart snippet – Bumi looks to break resistance @ 172/3p
Beaten down coal miner Bumi has been knocking its head against the 172/3p level on 3 occassions over the last 12 days since the shock announcement of a probe into the financial affairs of its holding in prime asset Bumi Resources PT.
With a key shareholder meeting on Thursday and the clock ticking to the announcement of the results of Chairman Horn-Smith’s investigation in association with law firm MacFarlane’s, the chart action in recent days with the stock looking to make a move decisively through the 170p level has caught our eye. The fundamental value is there without question, the primary issue now is can confidence be returned through some “horse trading” between Natty and the Bakries? If so then 200p+ beckons.
We open a Trading Buy here at 172p targetting 210p over the coming days.