Highlights / Stock Picks of the Day - Petronas Chemicals Group ("PCHEM")

On Wednesday, PCHEM was up 8 sen at RM6.59, which contributed to a 1.22 point gain to the FBM KLCI. The sharp move formed a Bullish "White Closing Marubozu" candlestick on the daily chart, which indicates sustained buying throughout the session. In addition to that, PCHEM had also managed a close above the year-long resistance line as well as the 20-, 50-, and 100-day SMAs. We believe technical picture has improved substantially and this is further underpinned by a bullish MACD-Zero line crossover. Additionally, with the rising Stochastics and RSI, the momentum has shifted from bearish to bullish. Risk  takers can consider nibbling now although for the more risk averse crowd, look to buy only on
more substantial breakout above RM6.63.

Source: Kenanga