PASDEC Stock Code: 6912 Target Price RM0.565
PASDEC has been experiencing persistent selling after reaching a high level of RM0.50 (R1) back in 11 May 2016. Yesterday, the share price managed to garner strong buying support from its RM0.42 (S1) level to surge 4.5 sen (10.71%), settling at RM0.465 on the back of strong trading volume, confirming the reversal play after the formation of an ‘Inverted Hammer’ candlestick. Strong uptick in RSI and Stochastic are also reinforcing the rebound play by reflecting the increasing buying momentum. With the bullish-bias technical picture, we are recommending a trading buy call on the stock with expectations that the share price will rebound towards its immediate resistance of RM0.50 (R1) and our target price objective of RM0.565 next in the near-term, which is 3 bids below its 21 April 2015 high level of RM0.58 (R2). Meanwhile, immediate support is seen at RM0.405 (S1) followed by RM0.35 (S2), where our protective stop-loss level is placed 4 bids below our S1 level at RM0.39.
Source: Kenanga Research – 24/05/2016
PASDEC HOLDINGS BERHAD
The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiaries are property development project management; and trading of building materials hiring of machineries and to engage in construction business.