Highlights / Stock Picks of the Day - Insas Berhad ("INSAS")

On Tuesday, INSAS’s share price surged 8.0% or 3.5  sen to end at 47 sen. Trading volume was high, and the share price formed a bullish “Marubozu” candlestick which penetrated the downward-sloping trend line as well as the 21-day upper Bollinger band. With the trend line resistance taken out, the technical picture suggests that the long term downtrend may have come to an end. In fact, we reckon the sharp upwards move is a precursor for further gains ahead, and the stock  should also present some good intraday trades as well. Traders may target the immediate resistances at 50 sen and 55 sen while a stop-loss should be placed just below the trend line support at 41 sen. Traders should also remain vigilant for early signs of a reversal, as the RSI  is already nearing overbought levels.

Source: Kenanga