Highlights / Stock Picks of the Day Industronics ("ITRONIC") – Not Rated

It wasn't all doom and gloom for the local bourse, and among the bright spots was ITRONIC which has been bucking the overall market selldown in the past month. For the January month, ITRONIC almost doubled from its lows of 28.5 sen. In fact, the share price ended 5.5 sen higher at 59.5 sen yesterday. This comes after a brief single-day  pause in the month long rally. With yesterday's strong move, ITRONIC is now within a whisker of the long term resistance line.  Buying momentum in the share remains strong, although the 14-day Stochastic and RSI indicators have both entered into overbought regions. We reckon that some near term consolidation is due. Nevertheless, traders should  watch for a decisive breakout above the 60 sen resistance level which would potentially herald the start of the next up-leg towards 65 sen and 75.5 sen.

Source: Kenanga