Highlights / Stock Picks of the Day - GSB Group Bhd ("GSB")

On Thursday, GSB rose 12% or 1 sen to 9.5 sen on fresh bargain hunting activities. What caught our interest was that the share price broke above the downward sloping resistance level with a surge  in volume. From a technical standpoint, GSB also depicted the classic "Bollinger Squeeze" in the previous weeks before staging an explosive breakout. The MACD, Stochastics and RSI are all supportive of a move higher, and we reckon
that the 12 sen  and 14 sen levels should make decent targets. Traders who are keen to buy into the stock may do so between 9 sen - 9.5 sen, while a tight stop loss of 8 sen should also be placed just below the trend line resistance-turned-support.

Source: Kenanga