Highlights / Stock Picks of the Day - DRB-Hicom ("DRB")

Positive news on DRB’s tie up with Honda sent the share price surging to an intraday high of RM2.60 before paring some of the earlier gains. At the close, DRB was up 6 sen at RM2.53 to form a “White Opening Marubozu,” which reflected the bullish sentiment on the stock. The share price has also closed above the 20-, 50- and 100-day SMAs as well as the downward-sloping resistance line at RM2.45, which we believe to be a precursor to further gains ahead. Trading volumes have also picked up in recent days and the MACD and RSI indicators are both supportive of a move higher going into the week. Overhead  resistance  levels  can  be  found  at  RM2.65  and  2.77  while  the downside support levels are capped at RM2.45 and RM2.34.

Source: Kenanga