Highlights / Stock Picks of the Day - Muhibbah Engineering (“MUHIBAH") – Not Rated

MUHIBAH's share price has been on a sustained downtrend in the past one year. During this time, the share price had retreated as much as 45% from RM1.46 in Feb 2012, to a low of just 80 sen barely three weeks
back. That said, we are beginning to see some bright spots emerge. Yesterday, the share price surged as much as 10.5 sen before closing off highs at 94.5 sen (up by 6.5 sen for the day). A reversal pattern is beginning to take shape, and yesterday's advance marks a retest of the "Double Bottom" trigger-line. Even as the share price did not manage a decisive close above the 95 sen trigger-line, we reckon that traders should pay keen attention to the stock's closing level today. Should this trigger-line resistance level be taken out convincingly, we reckon that a major trend reversal (towards RM1.10) may be on the cards.

Source: Kenanga