Highlights / Stock Picks of the Day - IJM Corporation Berhad ("IJM")

After a sharp selldown on the stock, IJM has since rebounded from a low of RM4.51 to a recent intraday high of RM5.11 last  month. The share price is now trading close to the RM5.10 support-turned-resistance level, having closed at RM5.02 on Monday. The share price  looks to have formed a short term support at RM4.97 where investors have been mopping up the stock. As opposed to the generally bearish chart patterns on the stock, its short term indicators paint a more optimistic technical picture. The MACD has just crossed above the zero line while the 14-day Stochastics has emerged from oversold territory. Additionally, the RSI has inched higher above the 50-mark, which points towards a likely retest of the RM5.03-RM5.10 cluster of resistance lines. A successful break above these levels is therefore, pivotal for further upside towards RM5.30. Until then, investors should continue to watch the stock.

Source: Kenanga