Yesterday, PMETAL surged 13.0 sen to close at RM2.44 on high trading volume as the market factored in PMETAL selling off its non-profitable aluminium smelting plant in China concurring that the move may enhance the group’s profitability in the future, according to media. Technically speaking, PMETAL has formed a bullish “Marubozu” body and broke out from the key 61.8% Fibonacci retracement resistance and is heading upwards on high buying volume, indicating that a second wave of uptrend could be in the making. Should the overhead resistance @RM2.48-RM2.50 is violated, we suspect the share price may continue the uptrend towards RM2.64 in short-to-medium timeframe. Meanwhile, the crucial underlying support is pegged at RM2.30 (Fibonacci support).

 

Source: AmeSecurities