Friday 22 February 2013

Highlights / Stock Picks of the Day Power Root Berhad ("PWROOT") – Follow-up comments


Since our “On Our Radar” (“OR”) report dated 14 Aug 2012 (TRADING BUY @ 90 sen), PWROOT’s share price performance has been nothing short of stellar. The share price had risen by 50% to yesterday’s closing price of RM1.35. Subsequent to our more recent “OR” write-up earlier this week, PWROOT’s share price has broken out of a “Bullish Pennant” chart pattern amid an increase in trading volume. The breakout marks a continuation of the uptrend, and this comes alongside the key indicators which have turned bullish. Of note, the MACD-Signal line has just completed a positive crossover to reflect the increase in bullish momentum. We reckon that even with the RSI now above the overbought mark, follow-through momentum would likely propel the stock towards the “Pennant” measurement objective of RM1.49.  

Source: Kenanga

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