Highlights / Stock Picks of the Day MISC Bhd ("MISC") – Follow-up comments

Earlier this month, we had recommended a technical  buy on MISC (RM4.30, report dated 2nd  Jan) when the share price broke above the downward sloping trend line. The bullish signal however turned out to be a flash in the pan as there was no follow-through momentum buying.  We suspect the single-day spike on New Year’s eve then could be just driven primarily by window dressing activities. Even so, the subsequent retreat
was relatively mild and the share price continued to hold above our RM3.95 stop-loss. More importantly, the stock was given a renewed lease of life yesterday when it rose 18 sen (at RM4.53) on high volumes. The
MACD indicator has now crossed above the zero line, and we reckon that perhaps this time, we may see the share price extend its gains towards our previous RM4.85 target. Our stop-loss remains unchanged at RM3.95.

Source: Kenanga