Highlights / Stock Picks of the Day - Oldtown Bhd ("OLDTOWN")

Recall that on the 4 December, we had called for a  "Technical buy" on OLDTOWN at RM2.03. The share price mostly played out as hoped and OLDTOWN ended Wednesday at RM2.22 for a hefty gain of 19 sen since our recommendation. In fact, following yesterday's 5 sen rise, the share price has penetrated the 76.4% Fibonacci Retracement Line and looks well positioned to retest the RM2.33 all-time high. The MACD Histogram is still rising and we believe that the bullish momentum is likely to continue. However, a strong resistance is seen at RM2.33 and with the Stochastic and RSI indicators deep in overbought territory; we reckon that traders should adopt a trailing stop-loss strategy from here. We suggest that buyers to place a higher stop-loss at RM2.13.

Source: Kenanga