Thursday, 21 March 2013

Highlights / Stock Picks of the Day - Mulpha International (“MULPHA") – Not Rated


LPHA has been on a sustained downtrend for a little over a year now. At its worst, the share price lost as much as 28% from the 50 sen high in February 2012 to a recent low of 36 sen just a month back. Of particular interest to us was that the share price breached the trend-line resistance amid a surge in trading volume yesterday. A bullish “White Marubozu” candlestick was also formed as a result of the 2 sen climb to 40.5 sen and we believe that a trend reversal may be in the making. The MACD is also in agreement with this notion, having depicted subtle signs of bullish divergence. This suggests that the down-trend is losing strength, and as such, we would not rule out the possibility that the shift in momentum would lead to further retracements towards 43 sen.

Source: Kenanga

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