Highlights / Stock Picks of the Day - Gamuda Bhd ("GAMUDA")

Gamuda has been trading within a rectangle trend channel since May last year. It closed 1 sen higher to RM3.44 at the end of the trading session. The stock is currently lying above a temporary support level at RM3.43, and a break will see it testing the long term support level again at RM3.32. At the same time, Stochastic and RSI are bending southwards, indicating that the stock is in a short term downtrend while MACD is moving sideways and converging with the zero line. Overall, the indicators are in line with the trend channel pattern. If the stock falls to RM3.32 and rebound at that level, we continue to believe that  it will return to the rectangle resistance at RM3.58.

Source: Kenanga