PMETAL caught investors’ eyes again after it announced that a Japanese company had offered a higher price to buy 20% of its subsidiary. Yesterday, PMETAL surged 10 sen and settled at RM4.03. Chart wise, PMETAL has broken out from a ‘Bullish Pennant’ chart pattern, indicating a continuation of its prior uptrend. Positive readings from key momentum indicators (MACD, Stochastic and RSI) and increase in daily trading volume are suggesting that buying interests is pilling up. We reckon that should buying interest persist, PMETAL could surge higher towards its next resistance level of RM4.29 (R1) and possibly RM4.47 (R2) next. Traders who look to buy into the stock should aim to take profit at RM5.12 (3 bids below the RM5.15 chart pattern measurement objective), while placing a stop-loss at RM3.69.

 

Source: Kenanga