Highlights / Stock Picks of the Day Power Root Berhad ("PWROOT")

Following a spectacular two-month rally mid of this year, PWROOT's share price entered into a consolidation mode as buyers paused to catch their breath. On Tuesday, however, PWROOT's share price broke out of the congestion zone amid high volume. The former resistance has now turned support, and we believe the bullish upwards  move heralds a resumption of the uptrend. We reckon the rally still has some distance to go, and suggest that traders buy into the stock now. We expect some resistance to be present at 123.6% Fibonacci Projection level at RM1.22, and suggest 2 bids below this level as an inital target. Beyond that, the next resistance level can be found at RM1.29 (2nd target price). For traders buying into the stock, a stop-loss should also be placed just below the support line at RM0.98.

Source: Kenanga