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

Recall that on the 31 October, we recommended a technical buy on Allianz at RM6.66. In the subsequent 2 weeks, the share price surged 24% to an intraday high of RM8.28 to surpass even our wildest expectations. Last Friday, however, Allianz confirmed the "Shooting Star" Top reversal candlestick amid heavily overbought signals on the RSI and the Stochastics indicator. Along with the MACD histogram that is seen contracting, we reckon that buying momentum is drying up. The overall uptrend remains largely intact, though traders who  do not wish to weather a correction may look to book in prior gains with the intention of buying back at a lower price. Downside support is likely to emerge closer towards RM6.75 - RM7.00 while overhead resistances can be found at the recent high of RM8.28 and RM8.69 next.

Source: Kenanga