Perdana Petroleum supports at RM0.34. Next support at RM0.25

A cup shape was formed in year 2018 with a handle occurred in March 2019. It shows a possibility of accumulation for Perdana Petroleum. On 13th March, the stock rallied 48% in a single day followed by an upthrust bar on the next day with lower volume. During the descending triangle was formed in April 2019, the lack of volume and weak price action forced me to sell this stock. Fortunately, I sold it above RM0.38 before the May mini bear that forced the price to drop further.

On 20th May, the stock price started to rise again and formed an M shape. This M shape is weak and it couldn’t break the RM0.38 resistance on 1st July. Currently the support is RM0.34 and the next support is RM0.25. I will not trade this stock until it shows sign of strength. (Click here for full picture)

Author: Gerald Koh