Highlights / Stock Picks of the Day - Zhulian Corporation Berhad ("ZHULIAN")

Recall that on the 7 December 2012, we called a technical buy on ZHULIAN at RM2.73. Since then, the share price had  been rising fairly slow. Recall that the stock rose to a high of just  RM2.80, the stock
retreating to the trend line support of RM2.70 of late. However, we continue to like the stock for its obvious cyclical patterns over the past year, and we believe that the next up-leg is already in the making. The stock has staged a strong upswing to RM2.81 yesterday. We noticed that each upward cycle spans roughly two months, and share price rise 43 sen after each resistance breakout. Using history as a guide, we have set our
sights on RM2.98, or 5 sen below the price projection following the earlier buy signal. We reckon that traders should look to buy into the stock with a stop-loss below the trend line at RM2.65.

Source: OSK