Highlights / Stock Picks of the Day - KPJ Healthcare ("KPJ") – Not Rated

KPJ emerged among the top gainers for the day against a backdrop of a sell-down in the overall market. The stock advanced a hefty 28 sen at RM5.98, after spending much of the day almost flat. KPJ has now broken above the trend line at RM5.75 as well as the 100-day SMA (RM5.90).  With the trend line resistance now turned support,  we believe that the bullish move represents a potential change in trend for the stock. Furthermore, the MACD indicator has also crossed above the zero line to mark a shift in momentum from bearish to bullish. We reckon that the share price would likely climb higher (towards RM6.45) in the days forward, however, we also suggest that traders watch for follow-through buying for added confirmation of the new trend.

Source: Kenanga