Wednesday, 13 March 2013
Highlights / Stock Picks of the Day - Perdana Petroleum ("PERDANA") – Not Rated
We had been reasonably successful in our market timing of PERDANA's shares previously (*see Chart for details). In January, we were able to square off our previous RM0.99 'buy position' for a gain of 19%-26%,
having recommended a take profit close to the RM1.29 peak (Take profit at RM1.17 & RM1.25). We also registered another 15% gain after reentering lower at RM1.13 (Take profit at RM1.30 two weeks ago).
Yesterday, the share price rose 7 sen to settle at RM1.36. The crucial RM1.30 resistance has now been taken out amid an increase in volume, and we believe the share price is on an uptrend resumption towards RM1.48, and possibly RM1.60 next. The technical indicators are mostly bullish, though the main caveat would be the RSI which has just reached overbought levels.