Immediate hurdle for Petronas Gas RM23, says AllianceDBS Research

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KUALA LUMPUR (May 26): AllianceDBS Research said the immediate hurdle for Petronas Gas Bhd (PetGas) was at RM23 and that Petgas had on May 25 traded within previous day’s range to form an inside day bar before closing at the day’s low of RM22.10 (down ten sen or 0.45%).

In its evening edition yesterday, AllianceDBS Research said that Petgas continued to trade below the 20-day and 50-day moving average lines since April 30.

“The inside day bar indicated a breather in the game play.

“Following the down close on May 26, the stock is likely to move between RM21.70 and RM23.00. A crossover of RM23.00 should see further price rise to the next overhead resistance zone, RM23.50 – RM24.00.

“However, a fall below RM21.70 would put pressure on the stock down to the subsequent support zone, RM20.00 – RM20.70,” it said.

AllianceDBS Research said stock volume traded on May 25 was 1.45 million shares compared to the 3-month average volume of 980,000 shares.

The research house said that indicator wise, the MACD was below the 9-day moving average line.