Tuesday, 5 March 2013

Highlights / Stock Picks of the Day - Malaysia Building Society ("MBSB") – BUY

On a more positive note, MBSB has just broken out of a bullish "Ascending Triangle" chart pattern following its 11 sen advance at RM2.60. In fact, the stock had also formed a white "Marubozu" candlestick which indicates that the bulls were dominant throughout the two sessions. We like MBSB for its clear cyclical patterns, and with all three indicators firmly positive, it is likely that follow-through momentum would carry the share price higher. We expect the share price to gradually make its way towards RM2.85. As such, we suggest that traders buy into the stock with a target price of RM2.83 (2 bids below the measurement objective). A stop-loss should also be placed just below the resistance-turned-support at RM2.38.

Source: Kenanga

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