Friday, 8 March 2013
Highlights / Stock Picks of the Day - Inch Kenneth Kajang Rubber Plc ("INCKEN") – Not Rated
Since recording an intraday high of RM1.10 earlier this year, INCKEN had retreated to a low of 89 sen where the share price continued to trade sideways for the most part of February. The share price was in the midst of retesting the trend-line support this week, when renewed buying interest sent the share price soaring as much 10 sen at RM1.02 yesterday. Trading volume had also increased notably, and the indicators have turned bulish as a result of the advance. In fact, the share price has broken out of the 21-day Bollinger bands, and we reckon that follow-through buying would likely send the share price higher in the coming days. We expect the RM1.10 resistance to be tested very soon, and should this level be taken out, further gains would be anticipated towards RM1.23 next.