Highlights / Stock Picks of the Day - Padini Holdings Bhd ("PADINI")

After a year-long rally, PADINI's share price appears to have lost its shine and has fallen more than 50 sen from August high. Yesterday however, the share price surged 13 sen to RM1.85, forming a  "Bullish Engulfing" pattern in the process. The 14-day Stochastic and RSI indicators have also hooked up to herald the start up an upcycle while the MACD histogram is indicating a shift of momentum from bearish to bullish. That said, as the share price is still trading within a downtrend channel and the SMAs are still stuck in a "Death Cross", we reckon that investors who are still holding on to this stock should take the opportunity to sell into strength  closer to the RM1.92 level. Only a break  above the RM2.05 levels would allow the overall trend to turn bullish.

Source: Kenanga