On the technical front, Padini continued to be one of our
favourite trading stocks, having formed a steady uptrend channel since October
2011. With the recent selldown in the local market, Padini's share price
corrected to its long-term trend line line at RM2.02 before forming a
"Morning Doji Star" candlestick reversal pattern. The Stochastics indicator and the RSI have
both hooked up, indicating the start of a short term uptrend and an increase in
relative strength. The share price has also crossed the 50-day SMA and we
believe that Padini is well-placed for an uptrend resumption from here. Resistance levels can be found at RM2.20 and
RM2.38 while support is provided by the upward sloping support at RM2.02.
Source: Kenanga
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