Highlights / Stock Picks of the Day - Sapurakencana Petroleum Bhd ("SKPETRO") – TAKE PROFIT

Previously, we suggested that investors to take profit on SKPETRO’s shares at RM2.82 when it confirmed a bearish “Evening Doji Star” two months ago. In our technical report dated the 9th  of November, the candlestick pattern had provided early signs that a drop was imminent, and we suggested investors to lock in prior gains and buy back lower at the RM2.60 and RM2.50 support. The share price indeed retreated to the  RM2.60 levels (albeit very briefly) to trigger our  entry price. Further positive headline news in the following weeks drove the share price 15% to close at RM2.99 yesterday. Currently, the share  price looks toppish  again at these levels as the indicators have turned downwards and the 20-day SMA support being violated. To that regard,  we suspect that profit- taking is likely to intensify and suggest that investors take profit again on the stock now.

Source: Kenanga