Highlights / Stock Picks of the Day - Allianz Malaysia Bhd ("ALLIANZ") – TAKE PROFIT

Over the past few months, ALLIANZ’s share price performance had mostly played out as per our expectations. The share price rose almost 22% to an intraday high of RM8.25 following the trend line rebound which we highlighted in our October 31st  technical report. We subsequently suggested that investors re-enter into a buy trade when the share price retreated to the trend line where it formed a bullish “Hammer” candlestick at RM6.79 (report dated 5th  Dec). This time however, the price action has been less sanguine despite rising 8% to RM7.36 so far. At present, the MACD is flashing bearish divergence signals, which  indicate that the technical picture is weakening. The share price is  also facing strong resistance at the RM7.35/40 levels, and as such, we feel that it may be worthwhile to take some money off the table at current levels.

Source: Kenanga