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

Just yesterday, we called a 'buy' on ALLIANZ at RM6.79 following the formation of the bullish "Hammer" candlestick at the trend line support level. As anticipated, the share price confirmed the key reversal pattern to form a three candlestick "Morning Doji Star”, which is typically characterized by a black candlestick followed by a Hammer and a white candlestick. The MACD histogram has now contracted below the zero line which indicates the prior bearish momentum is waning, and when taken together with the 14-day Stochastics indicator, the technical outlook of the chart suggests that ALLIANZ may be at the front end of a strong rebound. That said, we expect the share price to continue its upwards trend towards our RM7.95 target.

Source: Kenanga