Highlights / Stock Picks of the Day - Sapurakencana Petroleum ("SKPETRO")

Earlier this month, we recommended that traders 'take profit' on SKPETRO when the share price broke below the RM3.02-RM3.14 congestion zone (technical report dated 10th Jan). Since then, SKPETRO had retreated to RM2.87 yesterday, and even so, we  reckon that the current downcycle still has some distance yet. The  technical picture suggests that SKPETRO could potentially extend its  losses towards the RM2.70 support and possibly RM2.65 next. Nevertheless, SKPETRO's overall trend remains positive, and at the aforementioned RM2.70 and RM2.65 support levels, we expect strong buying interest to exist. Hence we recommend that traders buy into the stock should it retreat to those levels. Correspondingly, a stop-loss of RM2.55 should be employed while traders may target the RM3.00 and RM3.14 resistance levels.

Source: Kenanga