Highlights / Stock Picks of the Day - Mudajaya Group ("MUDAJAYA") – Not Rated

MUDAJYA has been trading within a well defined uptrend channel since April 2012. Following last fortnight's broad market sell-down, MUDAJYA has retreated to the channel support at RM2.52. Renewed buying activity has been able to support the share price at that level, and we reckon that the share price has a decent chance for a rebound to RM2.80. The key indicators are also supportive of a move higher and we reckon that traders looking to buy into the stock may do so now. The technical target price of RM2.80 suggests an upside potential of 8.9% from yesterday's RM2.57 closing price, while a stop-loss at RM2.48 should be placed (downside risk of 3.5%).

Source: Kenanga