Highlights / Stock Picks of the Day - Prolexus Bhd ("PRLEXUS")

On the daily chart, PRLEXUS has formed a classic bullish "Pennant" formation. The chart pattern fulfills the price and volume characteristics for a bullish continuation, namely a prior up-trend, followed by a consolidation phase and volume contraction. The subsequent explosive breakout on Monday (9.5 sen surge to 91.5 sen) heralds the start of the next up-leg, hence we reckon it may be well worthwhile to take up a long position in the stock. As pennant formations usually form at the halfway point of an overall move, we suggest traders set the price objective at RM1.13 which represents three bids below the "Flag  pole" projected target price. A stop-loss of 78 sen should also be placed.

Source: Kenanga