Highlights / Stock Picks of the Day - Microlink Solutions Berhad ("MICROLN")

On Thursday, MICROLN's share price surged 4 sen to  close at 45 sen. There was little news to make sense of the sharp move, though on the daily chart, the share price has confirmed its "Bullish Pennant" chart pattern. At the same time, the price also exhibited a classic "Bollinger Squeeze" and subsequent volatility expansion breakout to signal the possible start of a rally. The MACD, Stochastic and RSI indicators are bullish, and when taken in combination with the chart pattern and Bollinger Band, the technical picture suggests that the probability strongly favours the upside. Traders may consider buying in now with a "Bullish Pennant" target price of 58 sen. A stop-loss should be placed 2 sen below the 41.5 sen trigger line support.

Source: Kenanga