Highlights / Stock Picks of the Day - Hai-O Enterprise Bhd ("HAIO")

Following the news that HAIO had more than doubled its second-quarter earnings from RM7.86m to RM16.1m in the previous corresponding quarter, the share price gapped up 4 sen before extending its gains to end at the session high of RM2.25, up 8 sen for the day. Trading volumes were at the highest for the year, although we noticed that the share price has reached a crucial psychological resistance level at RM2.25. Strong resistance would continue to exist at this level, and a decisive breakout above the aforementioned level is imperative for further gains towards RM2.32 and RM2.42 next. We reckon that traders should closely monitor the stock for a breakout today. Should that be the  case, we suggest buying into the stock just above the RM2.25 resistance, whilst employing a tight stop-loss at RM2.19.

Source: Kenanga