Pendragon (20.5p) - Start of a new upward move?

Fully listed Pendragon (PDG), closed today at 20.5p, up 2.5p or 13.89%. With the preliminary full year results due on 28th February 2011, is this the start of a new upward move?

On a fundamental basis, PDG is currently on an exceptionally low PSR of 0.04 (compared to the sector average of 0.87). Similarly, its PER is currently only 5.31 (sector average is 13.7). Analysts are expecting the eps for y/e 31.12.2010 to have grown 203% to 2.53p, with another 34% growth in earnings expected for 2011 (to 3.39p).

What of the technicals? Well have a look at the grapth for the past 9 months (below):

From this, you can see that the closing price (20.5p) has nudged through the resistance line, extended from the two previous highs (Aug 2009 & April 2010). Similarly, it has broken through the shorter term resistance line (September 2010 to present).

Of particular note is the strengthening OBV, giving a positive divergence with the falling shareprice. Also, we have buy signal on the Stochastic Indicator. Similarly, the RSI and OBV have kicked up nicely today.

All of this bodes well for the future, as it mirrors the breakout that took place early in January 2009 (see graph below).

What you think about the prospects for Pendragon?