Highlights / Stock Picks of the Day - Malaysian Resources Corporation Berhad ("MRCB")

MRCB's share price has been trading within a downward-sloping trend channel similar to that of TIMECOM. However, over the past week, the share price saw multiple whipsaws at the 20-day SMA, which is also coincidentally located at the channel resistance. The indecision between buyers and sellers has formed a short term top, which further reinforces the resistance level of RM1.65. As for the indicators, the MACD remains below the zero line, which indicates that sellers continue to dominate. The Stochastics indicator has also entered overbought zones, following the recent up-cycle. Unless the share price manages a breakout of the RM1.65/62 congestion zone, the technical picture will remain bearish and a downward move towards RM1.50 seems likely.

Source: Kenanga