Mar 15, 2012

Buy Padini On Weakness

Padini Holdings Bhd (stock code 7052) –Consumer Products – RM1.50.

Chart wise:
Trending along an up-trend channel, Padini appears toppish at this juncture with a potential double-top formation. The first support is at RM1.28 along its 50 day moving average, failing which the RM1.12 level takes over.

above: Padini Daily chart (click to enlarge)

On the other hand, a breakout to above the RM1.60 on strong volume means that Padini is ready to trace a new and possibly steeper up-trend channel. We believe that Padini will likely to experience a pullback first before attempting to scale new heights. Buy on weakness.

by Mercury Securities