Wednesday, 6 March 2013
Highlights / Stock Picks of the Day - Sapurakencana Petroleum ("SKPETRO") – BUY
SKPETRO is among one of our favourite technical stock picks. Over the past year, the stock had mostly played out as per our expectations, and we were able to achieve a decent measure of success (15.0-16.5%
returns) on the two BUY recommendations we made. Following the 5 sen advance yesterday (at RM2.95), we believe that SKPETRO has once again presented us with a BUY signal. The bullish move has resulted in a triangle breakout, and this was further supported by a notable increase in trading volume. The MACD has also completed a Signal line crossover, and we believe that follow-through momentum would likely carry the
share price higher this week. We suggest that traders buy into the stock now, with upside targets of RM3.12 (1st TP) and RM3.36 (2nd TP). A tight stop loss of RM2.82 should also be placed.