Highlights / Stock Picks of the Day Oldtown Berhad ("Oldtown")

Earlier in the year, OLDTOWN was among the favourite stocks for traders and investors alike, with its clear cyclical patterns and bullish uptrend. However, following the trend line violation in September, the share price had been trading mostly sideways to form a "Rectangle". On Monday, the share price broke out of the trading range, rising  6 sen to close at RM2.03. The MACD has also returned above the zero-line, and amid the slight increase in trading volumes, we believe that OLDTOWN may be making a comeback. The sharp rise yesterday also saw the share price penetrate the 100-day SMA to close at levels last seen in September. We reckon traders may look to buy in now, with immediate targets at RM2.12 and RM2.20 while a stop-loss should be placed just below the resistanceturned-support of RM1.95.

Source: Kenanga