In our report dated some five months back (9th July 2013), we recommended a technical buy on PTARAS at RM4.91 (equivalent to RM2.46 after adjusting for Bonus Issue) when the share price broke out of a “Bullish Flag” chart pattern. The share price has since risen to a high of RM3.24 (August 2013) before ending at RM2.99 yesterday for a decent 24% gain if we include the 7.5 sen (*adjusted) dividends. While the share price falls short of our RM3.30 target price, the current technical picture no longer reflects our earlier bullish view. PTARAS is facing strong resistance between RM3.10-RM3.24, while its momentum indicators have turned

bearish. Its psychological support at RM3.00 has also been violated, which warns of further profit taking. For these reasons, we suggest that traders TAKE PROFIT. *Adjusted:- 1-for-1 Bonus Issue went ex-entitlement on the 12th Dec 2013.

 

Source: Kenanga