REX.L Share News (REX)

If relative strength is one of your key investment metrics then packaging giant Rexam might be a stock for you, reckons merchant bank Beaufort International.Kenneth Pio D'Mello, a senior analyst at the bank, said Rexam has been added to the Beaufort top relative strength buy list.The chart-gazer recommends an entry point of between 430p and 440p and to get out quick if the shares dive below 400p. In D'Mello's view, 420p is a support level while a reading of the runes suggests an exit point for short term traders of 490p.Restructuring and cost reductions should improve operating profits, D'Mello suggests, in a nod of the head towards fundamental analysis. Those of you who put more stock in technical analysis might want to note than the moving average convergence-divergence indicator - which is designed to spot momentum changes and shows the relationship between two moving averages of prices - is positive, and the relative strength index is above 50. JH