Amidst the recent broad bullish sentiment in steel stocks, we believe PA resources one of the few laggards in the group might soon join the bull party. Based on our wave counting, the recent moves in PA appears to be the start of wave (v). Earlier in April, it completed a double three corrective pattern of wave (iv) and slowly climbing its way up approaching its previous 52 weeks high at RM0.595. A breakout above this level could send the stock soaring towards RM0.97 which is in our opinion the most conservative target since we are using the 0.618 ratio from wave (i). 5th waves are however tend to be in equality to 1st waves when 3rd waves are extended. If the latter does happen, a more optimistic target of RM1.25 area might be possible.
评论:
The recent down move in PA suggested that our wave count was incorrect. We will post a new wave count on PA soon