Highlights / Stock Picks of the Day - Alam Maritim Resources Berhad ("ALAM")

On Wednesday, ALAM's share price rose 6.6% or 4.5 sen to 72.5 sen after its MD and CEO, Azmi Ahmad offered positive forward looking comments about the company. From a technical perspective, ALAM has now broken out of a classic "Bullish Pennant" chart formation. Trading volume spiked, and the chart pattern signals a bullish continuation of the uptrend after a two-month consolidation phase. The  key indicators (MACD, Stochastic and RSI) are all supportive of a move higher and we reckon that the next leg of the 24 sen upward move is already underway. We suggest that traders who look to buy into the stock may do so now, but for investors who are risk averse, they may consider buying on a retreat towards the 70 sen support. For this trade, a stop-loss should also be placed just below the lower triangle support at 64 sen.

Source: Kenanga