Thursday, November 24, 2011

PSL Holdings

PSL Holdings: CIMB has Technical Buy Call. House note that the 200-day SMA was tested twice in Aug and then in Oct again but it held firm on both occasions. That has led to a strong rally from the $0.235 low to current levels. Both its 30-dayand 50-day SMA are also on a rising trend, which bodes well for stock in the medium term.

There are still no bearish divergence signals yet, suggesting that the trend is still up. However, note that the RSI is overbought, which could see a short term pullback in the near term. As long as prices remain above the key support band of $0.32-0.36, the trend would likely continue upwards. Resistance is seen at the $0.51 levels as well as the $0.56 levels.

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