Highlights / Stock Picks of the Day - Malaysia Building Society Berhad ("MBSB")

In stark contrast, MBSB’s technical picture looks to be deteriorating. The share price broke below the year-long trend line earlier last week to signal the possible end of its bull run. The next crucial  support has come into view just 4 sen below yesterday’s closing price (RM2.24) and we are not optimistic on MBSB’s ability to hold above this level in the medium term. The SMAs have now turned negative, and the MACD has exhibited bearish convergent signals which indicate a shift in momentum from bullish to bearish. On the flipside, the 14-day Stochastic has already entered oversold levels, hence a short term technical rebound towards RM2.30 may be on the cards. Should that be the case, investors should then look to offload into strength.

Source: Kenanga