Presbhd: Poised for Next Upleg

Presbhd is an information and communication technology (ICT) company. It provides software licensing distribution and management as well as ICT training and certification courses in Malaysia.

Presbhd is currently working on revamping the IT infrastructure of our 20 years  old National Immigration Control System. The total revamp is expected to be a concession project. Currently, it is working on another public private partnership (PPP) project – to provide IT infrastructure and technical support for two polytechnics. Total capex is more than RM200mil for these two polytechnics and the concession is over 15 years. For more, go here.

 
Technical Outlook

Presbhd looks poised for its next upleg. Over the past 2 years, Presbhd had two nice upswing; in early 2015 & late 2015. The pattern looks set to repeat itself. What we look for are in the weekly chart are:
1. Prices had surpassed the 10-week SMA line and poised to challenge the 20 & 30-week EMA line
2. MACD had crossed above the MACD signal line and poised to go above the zero line
Will the follow-thru actions happen?


Chart 1: Presbhd's weekly chart as at Aug 16, 2016_10.00am (Source: ShareInvestor.com)

Let's look at the daily chart. We can see the following:
1. Share prices are above the 10-day SMA line and 20 & 30-day EMA lines
2. MACD, which crossed above the MACD signal line earlier, has gone above the zero line
3. +DMI is above the -DMI and ADX is hooking up
All the above are flagging the likelihood of the start of an uptrend. ADX hooking up is a possible prelude to it going above the 20-mark, which indicates momentum for the uptrend.  


Chart 2: Presbhd's daily chart as at Aug 16, 2016_10.00am (Source: ShareInvestor.com)

If Presbhd's upleg can take off, we may see the repeat of the last two rallies where it put in a gain of RM1.00 after it broke above the 30-week EMA line. For the current set-up, that breakout trigger will be at RM2.30.

Conclusion

Based on technical consideration, Presbhd looks like a good stock for a trading BUY.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.