Petronas Chemicals Group Bhd (stock code 5183) Industrial Products – RM6.49
We have a trading buy recommendation on Petronas Chemical based on the premise that its RM6.40 support level is not broken. The RM6.40 level was tested on several occasions, but had held steadfast. On the other hand, the upsides were also limited to RM6.70 as traders were not convinced to take the share price higher. Hence, trading pattern remains that of a tight
sideways trading band between the RM6.40 and RM6.70 over the past few weeks.
Under the current market conditions, the sideways consolidation can be considered commendable. No change in the trading pattern is expected in the short term as the technical indicators are lagging in the neutral zone. A breakout on eitherside will signify a clearer trend. In the meantime, the share price will consolidate sideways.
by Mercury Securities