PESTECH retreated 9.0% in the past two days after it hit the record high of RM5.55 mainly due to heavy profit taking activity. To recall, we had issued a “Trading Buy” call on the stock with a target price of RM5.84 on 9 April 2015. Both RSI and Stochastics have turned downwards, suggesting stronger selling pressure has overwhelmed buying interest. The profit taking activity drove down the share price, meeting our stop-loss level of RM5.19 yesterday. As a result, we are forced to stop-out on PESTECH, while we may revisit the stock once the technical picture looks attractive again.

Source: Kenanga Research - 14 Apr 2015