KUALA LUMPUR: CIMB Equities Research has a technical buy on Tenaga Nasional at RM5.22,'' at which it is trading at a FY12 price-to-earnings of 13.7 times and price-to-book-value of 1.0 times.

It said on Friday, Oct 7 Tenaga seems to have broken out from its downtrend channel.

Thursday's rebound lifted prices above its downward slopping resistance trend as well as its 30-day SMA.

CIMB Research said the stronger rebound is imminent. The next upswing is likely to push prices towards RM5.37, RM5.52 and RM5.70. The 50-day SMA at RM5.49 is also a magnet for prices.

'Technical landscape is improving, suggesting that the bulls are making a comeback. MACD signal line is rising while RSI has also swung above the 50pts mark. However, always put a stop at below RM4.97,' it said.