Highlights / Stock Picks of the Day - Petronas Chemicals Group Berhad ("PCHEM")

Earlier last month, PCHEM violated the "Rectangle"  support at RM6.30. The move signalled the start of a downtrend, and our view was further affirmed by the 20-, 50-, and 100-day SMAs which had completed a negative crossover. With the technical picture weakened, PCHEM managed eight consecutive days of losses. The share price subsequently rebounded from the RM5.63 low amid bargain hunting. Chart-wise, the key indicators have hooked up from the oversold levels. We expect the technical rebound to continue into the week, although noteworthy is that the overall technical picture remains negative. Hence, we suggest that investors who are still holding on to the stock should take the opportunity to offload into strength at the RM6.20-RM6.30 levels.

Source: Kenanga