KUALA LUMPUR (Feb 10): CIMB Equities Research has a technical buy on Perdana Petroleum at 77.5 sen at which it is trading at a FY13 price-to-earnings of 9.7 times and price-to-book value of 0.7 times.
It said on Friday Perdana Petroleum broke out of its triangle pattern yesterday and is now charging towards the 200-day SMA.
“A push above this moving average would be medium term positive as it also signals the return of the bulls.
“Technical landscape is improving. MACD signal line has staged a positive crossover while RSI is also rising. Once the 78.5 sen level is taken out, we expect the stock to edge closer towards 85.5 sen and 90 sen,” it said.
CIMB Research said aggressive traders may start to nibble now while others should wait for a push above 78.5 sen before going long. However, always place a stop at between 75 sen to 71.5 sen to limit downside risk.
It said on Friday Perdana Petroleum broke out of its triangle pattern yesterday and is now charging towards the 200-day SMA.
“A push above this moving average would be medium term positive as it also signals the return of the bulls.
“Technical landscape is improving. MACD signal line has staged a positive crossover while RSI is also rising. Once the 78.5 sen level is taken out, we expect the stock to edge closer towards 85.5 sen and 90 sen,” it said.
CIMB Research said aggressive traders may start to nibble now while others should wait for a push above 78.5 sen before going long. However, always place a stop at between 75 sen to 71.5 sen to limit downside risk.
