Post the recent sell-down in Oil & Gas stocks amid weakening crude oil price, PETDAG gained 82.0 sen (+4.88%) yesterday to close at RM17.62. While its underlying trend remains downward biased, things are looking more positive with a breakout from its 20-day SMA seen on top of the formation of a bullish ‘Three White Solders’ candlestick pattern. Adding support to the positive trend, MACD has also staged a positive crossover of its Signal line. Stochastic and RSI indicators have also rebounded upwards from their oversold territory, signalling regaining of buying interest in the stock. Judging from these bullish signals, we opine that a recovery might be in sight and it could retest its strong resistance at RM20.70 (R2) in the medium-term.

 

 

Source: Kenanga