Highlights / Stock Picks of the Day - Kulim (M) Berhad ("Kulim")

After making a low of RM4.62 in September, Kulim has since rebounded 40 sen to close at RM5.02 on Monday. In contrast to the overall bearish outlook of plantation stocks, Kulim's long term uptrend remains largely intact. The share price has now reached an important resistance level in an overall uptrend where the 50-day SMA and the 50% Fibonacci Retracement Level are located. Kulim will need to make a convincing
break above the early October high of RM5.03 for a  resumption of the uptrend. The technical indicators remain supportive of a move higher this week, and should the aforementioned resistance level be breached, we would turn bullish with our sights set towards the  next price target of RM5.40.

Source: Kenanga