Highlights / Stock Picks of the Day - Zhulian Corporation Berhad ("ZHULIAN")

Recall that on the 7th of December, we called for a 'Technical buy' on Zhulian at RM2.73. We further reiterated our call last week (28 December) when the share price rebounded from the trend line to stage
a new high. The share has thus far performed as hoped, reaching our RM2.98 projected price in a series of strong upward moves. On Wednesday, the share price ended up 9 sen at RM2.99. We reckon that ZHULIAN will likely meet with some degree of resistance at between RM2.98 (123.6% Fibonacci Projection Level) and RM3.00 (Psychological level), hence it may be a good idea to take some money off the table. However, as the indicators have yet to show signs of a reversal, an alternate strategy would be to ‘let the money run’  while employing a trailing stop-loss two bids below the most-recent  intraday low. To this regard, the trailing stop should now be placed at RM2.88.

Source: Kenanga