Highlights / Stock Picks of the Day - Telekom Malaysia Berhad ("Telekom")

Telco stocks have been leading the charge in the FBM KLCI over the past few weeks. Among them is Telekom, which saw a 50-odd sen rebound from its lows in mid September. Telekom's share price has now breached the resistance line at RM6.22 and we believe that alongside the positive indicators, the share price is well positioned to resume its uptrend. The 20-, 50- and 100-day SMAs are firmly positive and the MACD histogram is seen expanding northwards to indicate an increase in the buying momentum. At present, a strong support has developed at RM6.22, a level where traders should look to place stop losses just under. Immediate upside the other hand, is seen at RM6.46 and RM6.57 next.

Source: Kenanga