First Resources

First Resources: CIMB has Technical Buy Call. Note that share price appears to be forming a triangle pattern after it hit a high of $1.61 in Jan. Prices held up above its support trend line that has kept prices up since the May 2010 low. Both its indicators are converging, which is in line with the triangle view. As the RSI has hooked lower, expect a near term pullback for the stock.

Any pullback towards $1.37-1.39 would be a chance to get in long ahead of the breakout. Think that the stock is a buy on weakness and only a drop below $1.33 would trigger stop loss. A breakout above $1.47 would confirm the breakout, targeting the Jan high of $1.61.