Highlights / Stock Picks of the Day - DRB-HICOM ("DRBHCOM") – BUY

Recall that last Thursday (report dated 21st Feb), we pointed out that a rebound may be on the cards for DRBHCOM when it formed an "Inside Day" candlestick at the long trend line support level. A BUY signal was subsequently triggered the following day at RM2.50, and we reckon that the share price should rebound towards RM2.75 from here. Correspondingly, we expect any downside to be capped at RM2.38. Hence, we would recommend a stop-loss of RM2.35 or 3 sen below the support level. We continue to like the stock from a technical standpoint, as DRBHCOM exhibits clear cyclical trends within a well-defined trading
channel. The MACD-Singal line has just crossed over while the Stochastic oscillator implies that the short term up-cycle is already underway.

Source: Kenanga