Yesterday, PDZ surged 12.1% (3.5 sen) to close at RM0.325 with strong pick up in volume. Meanwhile, a breakout from the “Pennant” chart pattern is seen at RM0.31, painting a bullish picture on the stock. While MACD remains flattish, positive readings are gathered from the Stochastic and RSI indicators, signifying increasing buying momentum. Therefore, we opine that the stock might be poised for further rally if buying pressure persists. Traders at advised to start profit-taking at RM0.50 level (3-bids below flagpole measurement objective) while employing a strict stop loss at 3 bids below RM0.29 (S1).

 

 

Source: Kenanga