Oct 20, 2016

PESONA: 11 Month Breakout

pesona technical analysis

PESONA (Stock Code: 8311). Yesterday, PESONA gapped up 1.5 sen (3.6%) to close at RM0.43 to break out from its 11-month ‘rounding bottom’ chart pattern formation. The underlying trend looks encouraging as the share price is currently trading above all its key moving averages. MACD histogram has also staged a bullish convergence to rebound away from the zero-line, while the up-trending RSI is reflecting the incremental bulls. From here, follow-through buying interest could carry the share price towards a higher high at RM0.455 (R1) and possibly RM0.490 (R2) in the near-to-mid-term. Nonetheless, we observed that the RSI and Stochastic are close to their respective overbought threshold. Hence, we do not discount possibilities of a slight retracement in the near-term to neutralise the aforesaid condition. Any retracement towards its immediate support level of RM0.42/0.40 (S1) would be a good entry opportunity. Next support level is RM0.37 (S2).

Source: Kenanga Research – 20/10/16

The Company is principally an investment holding company. The principal activities of the subsidiaries are manufacturing and trading of bricks; and trading of polyurethane products; dealer and distributor of bricks and building materials; and Property management and related services.