Highlights / Stock Picks of the Day - Integrated Rubber Corporation Berhad ("IRCB")

Over the past year and a half, IRCB's share price has been particularly volatile. During which time, the share price had swung between a low of 11.5 sen and a 21.5 sen high. Of interest to us is the fact that IRCB has thus far managed to find solid support at the 11.5 sen level, where the share price rebounded strongly on two prior occasions. Yesterday, the share price surged 8% or 1 sen to 13 after briefly testing the 11.5 sen support. The indicators (MACD, Stochastic and RSI)  are turning bullish, hence we reckon that it is possible the share price is at the start of the next upcycle. We reckon this stock should represent a good intraday play, though traders may also look to buy in now, with upside targets 15 sen and 18 sen in mind. We expect the downside to be limied, though traders should still place a stop-loss just below the support level at 11 sen.

Source: Kenanga