Bumi Armada Bhd (5210)

• ARMADA closed 2.22% or 0.5 sen higher to RM0.23 last Friday.
• Chart-wise, ARMADA has been trading on higher-than-average trading volume recently and continue to trade above key moving averages. As reinforced by the uptick in RSI, we expect buying momentum to continue hence recent retracement is opportunity to ride the next leg up.
• Furthermore, the recent news on Iran’s seizure of UK flagged oil tanker is expected to add fuel to fire on the crude oil price.
• As such, we expect next resistance at RM0.245 (R1) and further to RM0.285 (R2).
• On the contrary, support levels are expected at RM0.215 (S1) and RM0.200 (S2).

Source: Rakuten Research - 22 Jul 2019