Highlights / Stock Picks of the Day - UEM Land Holdings ("UEMLAND") – Stopped Out

Recall that we had recommended a technical buy on UEMLAND on 4th January (RM2.20). The share price has since risen to a high of RM2.35 in the subsequent days although still shy of the RM2.38 target price we had set our sights on. To make matters worse, UEMLAND confirmed a Double Top" key reversal pattern yesterday. The bearish move resulted in a 16 sen drop to RM2.01, which also triggered our RM2.05 stop-loss. We reckon that traders who have yet to square off their positions should sell into strength towards the RM2.10 support-turned-resistance. Even with the sharp move, the chart pattern implies that UEMLAND may have further downside to go. The MACD is giving off bearish divergent signals while the "Double Top" suggests a move towards RM1.90.

Source: Kenanga