KUALA LUMPUR: HLG Research said WELLCALL HOLDINGS BHD []'s recent pullback from a 52-week high of RM1.53 (Jan 7, 2010) to as low as RM1.12 (Oct 28) has largely discounted the recent negative developments and it has fulfilled the minimum retracement target.

It said on Wednesday, Nov 3 that should price swings above RM1.25 (61.8% FR), it should expect the bulls to gain pace quickly.

This breakout, if it happens, could take share price higher towards the RM1.29 (200-d SMA) and RM1.36 (76.4% FR) levels. Beyond this, the next resistance levels are 52-week high of RM1.53.

"Put a stop loss below RM1.08. Our three month technical target is RM1.30, implying a 10.4x FY11 P/E (in line with its 5-year historical P/E of 11.2x). Immediate support levels are RM1.10-1.15," it said.