Market reaction to this game-changer for Presbhd was a big disappointment. Instead of a sharp price rally, we have a price drop! This obviously shows that investors are lukewarm about any project that involves large sum of investment and long gestation period. Then again, one should not be too surprised by the price drop if you look at the occasional bouts of selling over the past 2 years. However, if you draw a line connecting the recent bottoms, the stock should have support at RM1.85-1.90. If Presbhd can rebound back and stay above its long-term uptrend line at RM2.00, the technical outlook would still be positive. (As at 2.45pm, Presbhd was trading at RM1.95.)
Based on the project secured, I believe Presbhd is a good stock to consider for long-term investment.
Chart 1: Presbhd's weekly chart as at July 24, 2017 (Source: ShareInvestor.com)
Chart 2: Presbhd's monthly chart as at July 24, 2017 (Source: ShareInvestor.com)