Could Pak Elektron (PAEL) Rally Further?

Pak Elektron (PAEL) could rally further as the price continues to stay above and use EMA 9 as support. Previously, Pak Elektron broke past its resistance of 38 with a record volume of 841+ million shares being traded, which is a bullish sign. Plus, it retested the level of 38 multiple times but did not close below it. Hence, a further rally is possible with the recent result acting as the trigger.

On the fundamental side, PAEL posted an EPS of 1.95, which is a 74+ increase on a year-on-year basis. However, this could be due to seasonal effects as well, and earnings could drop on a quarter-on-quarter basis in the future as well. Furthermore, PAEL traded at an expected P/E ratio of more than 14 during its all-time high in 2017, whereas currently it trades at an expected P/E ratio of less than 10. Hence, it could be a good stock to keep an eye on.

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⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →