Yesterday, PELIKAN rose 6.5 sen (+6.99%) to settle at RM0.99 on strong trading volume. From a technical perspective, PELIKAN has broken out from its all-time high resistance level of RM0.96. Meanwhile, MACD has also staged a “Golden cross-over” the Signal line, indicating a bullish short-term trend ahead. Based on this bullish bias, we believe that follow-through buying interest could rally the share price past the RM1.00 mark, retesting its next resistance level of RM1.11 (R2). However, we also do not rule out the possibility that it may enter into a consolidation state once it surpasses the RM1.00-mark as the Stochastic indicator has entered into an overbought territory. We recommend traders to “buy on dips”.

 

Source: Kenanga