KUALA LUMPUR: OSK Research said although Petra Perdana's share price rallied by more than 10% on Monday, March 21, the price action did not alter its long-term bearish technical landscape.
It said on Tuesday, this long-term downtrend can easily be seen by connecting all the major lower highs since 2008. Its share price has been pressured by this line for more than two years. Even the most recent rebound in Dec 2010 was also capped by this major downtrend line.
Hence, until the stock cracks above this downtrend line, any rebounds at below the downtrend line, including the Monday's 12% gain, will be viewed as a bearish rebound.
'As long as the stock is still trading below this long-term downtrend line, it is even at risk of violating the key support floor at 83 sen. Should this level be taken out, the 79 sen level will serve as the next support, followed by a stronger support at 73.5 sen.
'To the upside, immediate resistance lies at the RM1 mark, followed by the RM1.10 level. Hence, both the immediate and mid-term technical outlooks of Petra Perdana remain firmly bearish,' it said.
It said on Tuesday, this long-term downtrend can easily be seen by connecting all the major lower highs since 2008. Its share price has been pressured by this line for more than two years. Even the most recent rebound in Dec 2010 was also capped by this major downtrend line.
Hence, until the stock cracks above this downtrend line, any rebounds at below the downtrend line, including the Monday's 12% gain, will be viewed as a bearish rebound.
'As long as the stock is still trading below this long-term downtrend line, it is even at risk of violating the key support floor at 83 sen. Should this level be taken out, the 79 sen level will serve as the next support, followed by a stronger support at 73.5 sen.
'To the upside, immediate resistance lies at the RM1 mark, followed by the RM1.10 level. Hence, both the immediate and mid-term technical outlooks of Petra Perdana remain firmly bearish,' it said.
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