Wednesday, 25 July 2012

Highlights / Stock Pick of the Day - Padini Holdings Berhad


Following our technical report dated 22nd June, Padini's share price has since completed the ascending triangle pattern, reaching our measurement objective of RM2.02 before the correcting back to the current level of RM1.89. Interesting to note is that Padini's share price has been exhibiting consistent short term cycles, and with the upward breach of the trigger line back in  mid-June, the previous resistance line has effectively turned support  at RM1.82. The current correction in Padini's share price has likely provided yet another entry point and we reckon a good entry level may yet be found just north of the support level at RM1.82 - RM1.85 (should the share price correct to these levels). Support in the meantime remains solid at RM1.82, and further down, RM1.80 where the 50-day SMA is at.

On the weekly chart, the share price is trading visibly within the upward channel while the 20 and 50-day SMAs are comfortably located above the 100-day SMA, indicating that the short to medium term uptrend remains largely intact. The MACD is also trending upwards, further reinforcing our overall bullish view on the stock.  

Source: Kenanga

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