Highlights / Stock Picks of the Day - Alam Maritim Resources ("ALAM") – INCREASE TP

Just two weeks ago, we recommended that traders buy into ALAM at 72.5 sen when the share price broke out of a "Bullish Pennant" chart pattern. ALAM had certainly been in the limelight of late, and the share price was further fuelled by string of large Petronas-related contracts. Of note, ALAM announced that it had secured a RM576m contract from Petronas Carigali to provide six marine vessels earlier this week.  Daily Charting.  At the intraday high of 94 sen yesterday (closing price was 91 sen), the share price had rallied as much as 30% or 21.5 sen since we highlighted the stock in our technical report dated the 3rd of Jan. In fact, the share price had run up beyond our initial target price of 91 sen. Even so, we feel that it may be premature to call it a day at this price. The share price has yet again formed a smaller, secondary "Bullish Pennant" on the daily chart, and we believe that the bullish momentum could potentially carry the share price towards 96 sen next. Weekly Charting. If we look at the weekly chart, ALAM has cut above the multi-year resistance line. The 20-week SMA has also completed a "Golden Crossover" while the MACD has penetrated the zero-line into bullish territory. The technical picture has improved significantly as a result of this week's bullish move, and we reckon that traders could also adopt a slightly longer trading horizon. To that respect, we suggest moving the stop loss to 78 sen (from 64 sen previously), while the TP should now be set to RM1.09 (from 91 sen previously) which is two bids below the 50% Fibonacci Retracement line.

Source: Kenanga