Perdana Petroleum experienced a selldown in the last few sessions and become oversold. A hammer pattern is observed and together with a neutral RSI, it may rebound higher if it breaks above the immediate resistance level of RM0.35. If this happens, the short-term target price will be RM0.395 and followed by RM0.435. Support is anticipated at RM0.31, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon rebound above RM0.35

Target: RM0.395, RM0.435 (time frame: 3-6 weeks)

Exit: RM0.31

Source: AmInvest Research - 15 May 2019