Highlights / Stock Picks of the Day - Perdana Petroleum ("PERDANA") – Buy on weakness

Recall that just two weeks back (8th  Jan), we recommended that shortterm traders to take profit on PERDANA’s stock at RM1.17 (1st  TP), and RM1.25 (2nd  TP). In the following days, PERDANA had reached a high of RM1.29 before being dragged down alongside most of  the other O&G stocks. Still, PERDANA’s overall technical picture remains bullish, and the share price remains within an obvious trend channel. That said, at yesterday’s closing price of RM1.14, the share price is nearing the channel support although the key indicators have yet to signal a rebound. As such, we recommend that investors look to buy lower at RM1.12-RM1.14, with sell targets RM1.30 and RM1.39. Meanwhile, a stop-loss should be placed just below the crucial support at RM1.02.

Source: Kenanga