PESTECH surged 31 sen (+12.7%) to RM2.75 yesterday, following the release of an impressive set of 9M13 results (9M13 earnings rose 88% YoY). The share price has now broken out of a 6-month downtrend, and surpassed its previous all-time high. Trading volume also surged to the highest level since June, while the key momentum indicators have hooked upwards into bullish territory. Hence we believe that follow-through buying would continue in the coming days towards the next resistance level of RM3.12 (R1) and possibly RM3.37 (R2). At the same time, downside appears limited, with buying support at RM2.73 (S1) resistance-turned-support level, and RM2.34 (S2) the next support.

 

Source: Kenanga