SKPETRO was up 3.08% to RM2.68 yesterday on the back of higher trading volume. Chart wise, the share price has convincingly broken out from its multimonth downtrend resistance. There appears to be a ‘Gravestone Doji’ formed on yesterday’s trading session, signifying a slight bearish trend. We believe that the share price will consolidate for now since both Stochastics and RSI has started to wane in their respective overbought region. Historically, the share price would consolidate each time the Stochastic had reached Overbought levels. Thus, we recommend traders to wait for share price to retrace back to RM2.54 before entering the stock.

Source: Kenanga Research - 17 Apr 2015