Highlights / Stock Picks of the Day Benalec Holdings ("BENALEC") – BUY

Just two days ago (6 Feb), we highlighted that BENALEC was trading close to the confluence of support levels at RM1.13/14 and that buying interests may exist at those levels. True enough, BENALEC confirmed the “Morning Doji Star” bullish reversal candlestick yesterday after rising 2 sen at RM1.16. The tri-candlestick pattern represents a strong reversal pattern and is particularly effective when used in  conjunction with the trend line support levels. The key indicators have also hooked upwards, and we reckon that a rebound is in the making. As such, we are upgrading our previous ‘Non-rated’ recommendation to a ‘technical buy’. From here, we expect the share price to climb higher towards RM1.27, and suggest that traders target RM1.25 (2 bids below the RM1.27 resistance). Meanwhile, a stop-loss of RM1.08 should also be placed.

Source: Kenanga