Tuesday, 12 March 2013
Highlights / Stock Picks of the Day - Chemical Company of Malaysia ("CCM") – Take Profit/ Employ trailing stop-loss
Recall that on the 7th of March, we recommended a technical buy on CCM at RM1.08 after a trigger-line breakout confirmed the bullish "Double Bottom" reversal pattern. In the days that followed, the share price had continued its upwards momentum. The share price is now up by a solid 17% since we made the recommendation (having ended at RM1.26 yesterday). In fact, the RM1.22 target price that we had projected was surpassed in less than a week. Hence, we suggest that traders look to take profit between RM1.26-RM1.30 as the stock is nearing the crucial RM1.30 resistance. That said, the technical indicators have yet to show any signs of weakness, and risk takers may instead consider employing a trailing stop-loss strategy.