Highlights / Stock Picks of the Day - Alam Maritim Resources Berhad ("ALAM")

Just three weeks ago, we highlighted that ALAM’s share price seemed toppish at 71 sen and that traders should look to take profit. The share price has now retreated by almost 10%, partially due to yesterday’s 3.5 sen tumble to 64.5 sen. In an unexpected move, the  share price broke below the 65 sen trigger line of what resembled a lopsided “Double Top” reversal pattern. With the sharp single day move, the technical picture has deteriorated with further downsides expected. We reckon the next support levels are likely to exist at 62 sen and 59 sen and until the daily chart presents us with some forms of a bottom reversal pattern, bias will remain to the downside. It is also worth to note that ALAM’s quarterly results are due for release on Friday, and hence traders should keep that in mind before re-entering into a buy trade.

Source: Kenanga