On Wednesday, PESTECH advanced 19 sen to end at RM4.26. Despite the sharp rally over the past two years, investors continue to like the stock on the back of its high earnings visibility and strong contract flows momentum. Of particular interest to us is that PESTECH’s share prices resembled a “Bullish Flag” chart pattern. Readings from the indicators suggest that buying momentum is healthy, and we suspect that another bullish move could be underway. Traders looking to buy into the stock should aim for RM4.69 (3 bids below the Flagpole measurement objective), while placing a stop-loss at RM3.97.

 

Source: Kenanga