Eye on Stock

Perdana Petroleum Bhd, (formerly known as Petra Perdana Bhd) rebounded moderately from a nine-year low of 48 sen on May 23 to a high of 67.5 sen on June 18, coincidentally, also the 200-day simple moving average (SMA) on renewed bargain hunting before retreating slightly to trade range-bound on consolidation due mainly to overbuying. The stock finished up two sen to 63.5 sen yesterday.

Based on the daily bar chart, Perdana Petroleum appears to be making an effort to recover after a long bearish phase and chances are great that prices could develop further to the upside, as investors are seen trotting back to this counter on growing trading volume.