Highlights / Stock Picks of the Day - Astral Supreme Berhad ("ASUPREM")

After two months of consolidation, ASUPREM finally  broke out of the congestion zone. ASUPREM was among the favourite trading stocks under our watch list back in July. Yesterday, ASUPREM surged 3.5 sen to 28 sen on high trading volumes and along with a 21-day Bollinger band volatility breakout, we believe the share price has once again come back into play. On the indicators, the MACD histogram has expanded  northward to indicate an increase of bullish momentum while the  14-day RSI has hooked up, currently just shy of the 70- overbought mark. Additionally, the share price has just penetrated all three SMAs. We hence reckon ASUPREM may have some upward distance yet. That said, we also view this stock as highly speculative, hence traders should remain vigilant for any early signs of a reversal. For this stock, a stop loss should be placed below the support of 24 sen.

Source: Kenanga