Highlights / Stock Picks of the Day - Zhulian Corporation ("ZHULIAN")

In a similar situation, ZHULIAN's share price retreated to RM2.85 following our 'Take Profit' recommendation on the 3rd of Jan (RM2.99). Despite the 8 sen drop yesterday, ZHULIAN's overall uptrend remains largely intact, and we reckon that any further declines would likely be shallow from here. Hence, traders and investors alike should view the current weakness in the broad market as an opportunity to pick up the stock. We reckon that the RM2.80 confluence of support lines should be a decent entry level. At this level, we expect the stock to be well supported by the trendline, 50-day SMA, and the multi-month resistance-turnedsupport level. Should this entry level be triggered, traders should look to place the stop-loss just below at RM2.74 whilst a target price of RM2.99 and RM3.06 should be kept in mind.

Source: Kenanga