Thursday 4 October 2012

Highlights / Stock Picks of the Day Kuala Lumpur Kepong Berhad ("KLK")


Plantation stocks were battered on Wednesday following the sharp selldown in CPO futures the day earlier. Among the heavyweight, losers were Sime Darby and KLK, which offset the gains in  the Telco sector to
drag the index into the negative territory. Chart-wise, KLK fell through the floor in the morning session but pared some losses thereafter to close at RM20.90 - a RM1.14-decline throughout the day. The  price action
continued to trade within a downtrend channel, and looks well in place to reach the channel support in due course. Nevertheless, with the 14-Stochastic and RSI both within deeply oversold regions, we will not rule
out a rebound in the short term. Traders should then take the opportunity to sell into strength closer to the return line at RM21.60.

Source: Kenanga

No comments:

Post a Comment