Highlights / Stock Picks of the Day - Malaysia Building Society Berhad

Malaysia Building Society Berhad ("MBSB") has been  trading on an uptrend since March 2011, exhibiting clear cyclical patterns, which span 4-5 months each. After briefly returning to the trend line earlier this month, the share price rebounded alongside the Stochastic and RSI indicators that had emerged from oversold territories. The MACD has also managed a signal line crossover, indicating that the momentum has shifted from the sellers to the buyers. We reckon the third upward cycle is already underway, and having closed above the 100-day SMA on Tuesday, MBSB may look to test the July/Aug high of RM2.54.

Source: Kenanga