Aluminimun smelter PMETAL has gained much market interest on the back of stronger earnings prospect ahead of better aluminium market fundamentals. At the end of yesterday, its share price closed at RM6.08 on higher trading volume. Since early Sept, its share price has been on a downtrend until a breakout from the +2 s.d. downtrend regression line at RM5.87 yesterday, signaling revival of bullishness in the stock. In addition to that, the MACD has also staged a positive crossover of the Signal line with momentum indicators showing positive readings. On the back of the bullish bias, we are placing a ‘Trading Buy’ call on this stock with the expectation that the share price could possibly retest its previous high of RM7.45 with a potential upside of 22.5%. Meanwhile, a strict stop-loss is placed 3 bids below the RM5.60 (S1) level at RM5.57.
Source: Kenanga