3 November 2012
Since a major sell down in PPB in late-July from around RM15.20 to find support at RM13.90 which was then violated in early-September and price has bottomed out at around RM11.90 (14+% from RM13.90 - within Cup with Handle rule of 1/3) then in the duration of mid-Sep to mid-Oct. The stock has recover to reach a peak at RM13.90 in late-October and pulled back.
There is indeed a clear chart pattern that technical analysis called "Cup with Handle" in which it starts with a bowl-like-U-shaped movement from selling down to bottoming out and rising again to formed a U shape, and is then followed by a sell-down again to form a handle.
The stock price of PPB is clearly showing this chart pattern albeit under a different situation - traditional Cup with Handle is formed with a prior rising trend while in this case PPB is facing a mid-term downtrend, but I look into it that PPB it staging a rebound that in one way or another can be considered as starting a rising trend.
If the handle did formed eventually with a rising trend again, RM13.90 would be the critical point of resistance, if it is broken then Cup with Handle pattern is proven and the price will continue for more upside.
MACD is still bullish as MACD is still above both center-line and signal-line.
RSI is slightly bearish as it is pulling back from overbought level (70).
Slow Stochastic Indicator is slightly bearish as it is pulling back from overbought level (80) too.
MACD is still bullish as MACD is still above both center-line and signal-line.
RSI is slightly bearish as it is pulling back from overbought level (70).
Slow Stochastic Indicator is slightly bearish as it is pulling back from overbought level (80) too.
Critical Resistance: RM13.90
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