Wednesday, October 21, 2009

Penergy has a bullish breakout...

Petra Energy Bhd ('Penergy') has broken to the upside of its triangle in early September at the RM1.80 level. Penergy is a fairly profitable Oil & Gas stock. For the 6-month ended 30/6/2009, it reported a net profit of RM13.8 million on the back of a turnover of RM228 million. Its 6-month EPS is 7.1 sen while NTA per share as at 30/6/2009 stood at RM1.56.

Chart 1: Penergy's 1-year daily chart as at Oct 20, 2009(source: Tradesignum)

The stock has broken above its downward channel in May (see Chart 2 below). After that breakout, the share price consolidated in a triangle pattern. With the recent breakout of the triangle pattern, the stock's next up-leg may have started. Its upcoming resistance will be at RM2.20 (its May high); RM2.50-60; and RM3.00.

Chart 2: Penergy's daily chart from July 2007 to Oct 20, 2009 (source: Tradesignum)

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