PCCS jumped 8.5 sen (12.5%) yesterday to RM0.77 on the back of a surge in trading volume ahead of its AGM this week. Chart-wise, there appears to be a long day white Marubozu-like candlestick, indicating that buyers dominated yesterday’s trading. The MACD has also just crossed over the Signal line, suggesting that buying momentum is building up, while RSI and Stochastics are also trending upwards. PCCS has formed a bullish “flag” pattern, while a breakout from the resistance level of RM0.68 insinuates the continuation of the previous bullish move of 24.3 sen. As such, we expect the share price to push towards RM0.89 while traders should aim to take profit at RM0.86 (3 bids below the flagpole measurement).

 

 

Source: Kenanga