PENTA broke out from its ‘Pennant’ chart pattern yesterday, settling above all its key SMA levels. The MACD indicator is depicting a brighter outlook. Meanwhile, Stochastic indicator has also emerged strongly from its oversold region to imply a reversal play post the recent consolidation phase. Besides, RSI indicator is also trending upwards, suggesting growing buying momentum. With the bullish prospect ahead, we are issuing a Trading Buy call on the stock with a near-term TP of RM0.57 based on our ‘Pennant’ chart measurement objective. On the downside, our stop-loss is placed at RM0.47.

Source: Kenanga