Yesterday, PESTECH attracted strong buying interest following an announcement that it has secured a USD86.1m (RM282m) Cambodian electricity-transmission line project. The project is projected to give a huge boost to the company’s current orderbook. As a result of yesterday’s bullish move, PESTECH has broken out of a 4-month long “Bullish Flag” pattern to establish a new uptrend. Technically speaking, the bias is now firmly to the upside with the MACD just crossing over the signal line yesterday, issuing a strong buy signal. From here, we expect PESTECH could potentially extend its gains towards RM5.00 (the “Flag” price measurement objective). Downside seems limited from here, and we expect strong buying support to emerge at RM3.70. 

 

Source: Kenanga