Highlights / Stock Picks of the Day - Kossan Rubber Industries ("KOSSAN") – BUY

KOSSAN confirmed a classic "Double Bottom" chart pattern in December after breaking above the RM3.32 trigger line. The share price subsequently reached a high of RM3.50 before retreating to the trigger line earlier this week amid the selldown in the broader market. As per expectations, the share price found solid support at the RM3.32 level, where it rebounded to RM3.36 on Wednesday. The overall technical picture looks to be supportive of a move higher, and it is our belief that the bullish "Double Bottom" pattern remains in effect. As such, we reckon the share price is likely to extend its gains towards the RM3.65 measurement objective over time, and suggest that traders look forward to take advantage of this strategy do so whilst employing a stop-loss at RM3.22.

Source: Kenanga