PRESS METAL BHD Stock Code: 8869 The Group is also involved in property development waste management and environmental engineering projects.
PMETAL (Trading Buy, TP: RM3.49, SL: RM2.97). PMETAL has been undergoing a consolidation phase after reaching a high level of RM3.20 back in early-May. Yesterday, the share price surged 14.0 sen (4.68%) to stage a breakout away from its downtrend resistance line to close at RM3.13 on strong trading volume. MACD histogram showed signs of resurgence just above its zero-line, while strong uptick in RSI and Stochastic are indicating that buying momentum is piling up. With the positive technical outlook, we reckon it could look to retest its immediate resistance of RM3.20 (R1) before attempting RM3.52 (R2) next in the near-mid-term. We advocate interested investors to place a protective stop-loss 3 bids below its immediate support level of RM3.00 (S1) at RM2.97 with a target objective of RM3.49 (3 bids below the R2 level). Meanwhile, the next level of support is located at RM2.83 (S2).
source: Kenanga Research – 9/6/2016
