Highlights / Stock Picks of the Day - KSK Group Berhad ("KSK")

In stark contrast, KSK failed to break above the 71 sen resistance following our technical buy call on the 26th of September (69 sen). In fact, the share price has confirmed the "Double Top" reversal pattern after violating the neckline support at 64 sen (and our recommended stop-loss). The technical picture has deteriorated significantly as a result, and the overall technical outlook suggests a bearish reversal of major proportions. The SMAs have also completed a "Death Cross", and given the dismal circumstances, we suggest that traders who are still holding on to the stock should consider selling just below the support-turnedresistance at 64 sen. This comes as we expect the stock to continue its downward spiral towards the ""Double Top" measurement objective of 58 sen.

Source: Kenanga