PELIKAN surged 14 sen or 12.3% yesterday on strong volume to close at RM1.28, breaking out from the resistance level of RM1.17 driven by signs that its earnings turnaround is gaining traction. MACD indicator was observed staging a crossover of its Signal line, lending a hand to the bullish bias. The positive outlook is further evidenced by strong buying momentum as both Stochastics and RSI indicators are seen hooking upwards. Should the buying momentum persist; we expect the share price to test its previous high resistance level of RM1.55 (R2), with immediate support marked at RM1.17 (S1) level.

 

 

Source: Kenanga