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

Flashing back to last Friday (14 Dec), we issued a 'technical buy' rating on MICROLN at 45 sen. Since then, the share price had risen 13% or 6 sen to end at 51 sen yesterday. The share price performance had been considerably good, and following a brief pause at the 50 sen level, trading volumes have picked up and MICROLN looks to be resuming its upwards climb. Nevertheless, as the 14-day Stochastic and RSI indicators are now deep within overbought levels, we reckon that traders should tread cautiously going forward. Traders who had previously bought into the stock should consider upping the stop-loss level to 48.5 sen (from 41.5 sen previously) whilst keeping the 58 sen target price unchanged. A trailing stop-loss strategy would also come in handy for this stock.

Source: Kenanga