Highlights / Stock Picks of the Day - Hai-o Enterprise Berhad ("HAIO") – NOT RATED

Recall that on 21 December 2012, we recommended that traders watch for a breakout of the crucial RM2.25 resistance. HAIO met with strong resistance at that level but eventually managed to materialise the muchanticipated breakout a full week later. We believe HAIO's chart pattern resembles an "Ascending Triangle" and the breakout  should mark a resumption of the uptrend towards RM2.52.  At yesterday's closing price of RM2.39, HAIO is nearing the RM2.42 resistance. We expect a small degree of profit taking at that level and should the momentum carry the share price beyond that level, our "Ascending Triangle" price objective of RM2.52 should then be attainable.

Source: Kenanga