Tuesday, 8 January 2013

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


On the 21st of November, we recommended a 'techical buy' on PERDANA at RM0.99. The share price had mostly performed as  hoped, and we subsequently revised our target price upwards to RM1.17 following a further breakout above the RM1.04 key resistance. More recently, PERDANA announced that it had received a letter of award for five-year charters worth RM430m from Petronas Carigali to supply four units of anchor handling tug supply vessels. The positive news resulted in a 6 sen advance in its share price to close at our RM1.17 target price and Fibonacci Projection level just yesterday. The share price is up 18% since our recommendation; and is now overbought on both the Stochastic and RSI indicators. We reckon that traders should consider taking some money off the table, though aggressive traders may look toward the next resistance of RM1.25 before throwing in the towel.

Source: Kenanga 

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