Highlights / Stock Picks of the Day - Perdana Petroleum Berhad ("PERDANA")

Last month, we recommended a ‘technical buy’ on PERDANA at RM0.99 (dated 21st Nov). Since then, the price action had been relatively choppy, though the share price held up relatively well despite the selling pressure in the overall market. Noteworthy was yesterday’s strong upwards move, which broke above the crucial RM1.04 resistance level. The share price ended 5 sen higher at RM1.08, and has reached levels last seen more than a year ago. As it stands, we believe the share price has further upside to go, hence we are now recommending that traders look toward the 123.6% of the Fibonacci Projection level (RM1.17) as the next target price. Correspondingly, we also suggest that traders lift the initial RM0.91 stop-loss level to RM0.99.

Source: Kenanga