Highlights / Stock Picks of the Day - Asia Media Group Berhad ("AMEDIA")

For many traders, AMEDIA was a favourite in the past year. The share rice rallied from a low of 31.5 sen in May to a high of RM1.15 in a short span of 4 months. However, most of the gains were surrendered back this month when the share price "fell off the cliff" and which was further exacerbated by news that the CEO had sold part of his stake in the open market. On Tuesday, AMEDIA’s share price surged 5 sen to 37.5 sen after hovering above the 31.5 sen support where traders and investors alike would likely to look for bargain hunting. As both the Stochastic and RSI indicators are still in deeply oversold levels, we  believe that there is a rebound potential from a technical standpoint. Downside is likely to be cushioned at the 31.5 sen support level while the overhead resistance is a fair distance away at 51 sen.

Source: Kenanga