PESTECH’s technical picture looks interesting as the share price is poised to break out from its one-month congestion zone and to re-test the downward slopping triangle resistance @RM2.45 as the market speculates on the release of positive financial results, expected in a few days. Of note, trading volume is slowly gaining traction to support the upside breakout as the share price close above the 100-day SMA. A convincing breakout above the triangle resistance could stage a resumption of the previous bullish trend towards RM2.73 (previous high) and RM3.97 (measurement objective) in mid-to-long term. Meanwhile, downside risks are pegged at RM2.35 (Fibonacci) followed by RM2.26 (previous low).

 

Source: Kenanga