PELIKAN has been on an upward trend since the start of last year, and it rallied to new high of RM1.50 yesterday. However, there was a quick reversal in the stock’s sentiment yesterday. At the closing bell, PELIKAN dived into the red by dipping 15 sen (-10.2%) to settle at RM1.32 with a ‘Bearish Engulfing’ candlestick. The candlestick suggests a bearish reversal pattern could soon be taking place. MACD indicator has also started to dip, reinforcing the bearish outlook. Key indicators like Stochastic and RSI are also hooking downwards from their overbought level, supporting the bearish biasness. We believe that the share could witness further profit-taking to neutralize the current overbought situation. Hence, we are suggesting traders to adopt a ‘Trading Sell’ strategy on this stock.

 

Source: Kenanga