Highlights / Stock Picks of the Day - Benalec Holdings Berhad ("Benalec")

Benalec has been on a downtrend since the mid of last year. However, the share price appears to have formed a short-to-medium term bottom at the RM1.10/1.12 levels. Earlier this week, the price action took out the downward-sloping trend line (S1), as well as the early May high of RM1.28. With the 20-, 50- and 100-day SMAs having completed a golden crossover this week, we believe that the share price may be in for a major bullish reversal although it may consolidate in the near term amid overbought signals. That said, any weakness towards the RM1.20 support would likely see buyers return and investors with a longer-term view may look to enter at this resistance-turned-support level.

Source: Kenanga