Tuesday, 29 January 2013

Highlights / Stock Picks of the Day Tradewinds Plantation ("TWSPLNT") – Not Rated

Plantation stocks have been battered in the past few months, and among the ranks was TWSPLNT. However, we are beginning to see potential signs of a recovery in the stock. The stock appears to have found solid support at RM3.92, a level where strong buying activities existed in the past four months. In fact, TWSPLNT rose 16 sen at RM4.36 on Friday, with the share price managing a decisive close above the crucial 100-day SMA for the first time since July 2012. The MACD indicator is also flashing bullish convergent signals, and we believe that the strong momentum should carry the share price higher in the coming months. We expect the RM4.50 immediate resistance to be attainable, and should this level be
taken out, we may set our sights on RM4.98 next. Correspondingly, a stop-loss of RM3.87 should also be placed.

Source: Kenanga

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