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

Recall that on the 14th of November, we called for  a 'take profit' on ALLIANZ at RM7.62. The share price has since retreated to an intraday low of RM6.65 yesterday before ending at RM6.79, down 7 sen. At these levels, the share price has reached the converging points of two crucial support levels, and with the overall uptrend still intact, we believe that the stock may be worth revisiting. The share price  has also formed a bullish "Hammer" reversal candlestick which marks a bottom, and potentially a rebound from the trend line. Apart from the lagging MACD and RSI indicators, we believe the technical picture is conducive for a move higher. Traders may consider buying now, with  a target price of RM7.95, while a stop-loss should be placed just below the October support at RM6.40.

Source: Kenanga