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

Recall that on the 17th of October, we called a technical buy on MKH at RM2.30 after the share price rebounded from the trend line at RM2.20. In a somewhat lack-lustre share price performance, MKH rose to an intraday high of RM2.42 in the subsequent weeks before turning for the worse. With the upward trend line now broken, the technical picture has deteriorated. The MACD indicator has also weakened  substantially, and we reckon that traders should consider squaring off their long position in MKH. The 14-day Stochastic indicator points towards an upcycle in the near term, which may offer traders the chance to sell as the share price approaches the trend line resistance again (currently at RM2.35). Further resistance can be found at RM2.42 while immediate support is located at RM2.20 and RM2.00 next.

Source: Kenanga