Highlights / Stock Picks of the Day - Coastal Contracts Berhad (“COASTAL")

COASTAL kicked off the year with a parabolic rally, reaching a high of RM2.74 in February. In the subsequent months of volatile trade, the share price lost 39% of its value before consolidating sideways. Almost forgotten, COASTAL was given a renewed breath of life yesterday when the share price surged 16 sen to close at RM2.12. The strong upward move confirms a bullish reversal of sorts as the price action is now seen as making higher highs and higher lows. Similarly, the MACD is issuing a bullish convergent signal, while the MACD histogram is indicating a shift of momentum into bullish territory. The technical picture has turned bullish and we reckon investors should look to buy on weakness at the RM2.03-RM2.08 support levels (TP of RM2.35). A stop-loss of RM1.85 should also be placed as a precaution.

Source: Kenanga