Highlights / Stock Picks of the Day - Oldtown Berhad ("OLDTOWN")

Following our earlier 4th of December "Technical Buy" call on OLDTOWN (RM2.03), the share price has rallied 17% to an intraday high of RM2.37 within a short 4-week time span. However, the share price has now formed an "Evening Doji Star" candlestick pattern,  which signals a potential bearish reversal. This three-day candlestick pattern was also formed just as the share price failed to close above the RM2.33 key resistance level and to make this worse, the Stochastic and RSI indicators have dipped downwards from overbought levels. Hence, we reckon it may be worthwhile to take some money off the table as a retreat seems likely. To that regard, we will only turn bullish again should the share price manage a decisive close above RM2.33.

Source: Kenanga