Highlights / Stock Picks of the Day - Pos Malaysia ("POS") – Raising Stop-loss

Recall that on the 28th of Feb, we recommended a Technical Buy on POS after the share price broke out of a "Bullish Pennant" chart pattern. The share price had since extended its gains to RM4.00 last week, before
retreating slightly on mild profit taking. Yesterday, however, the share price formed a "Rising Three Methods" pattern. The candlestick pattern marks a continuation of the overall bullish trend, though POS would need to breach the RM4.00 psychological level for added confirmation. Should this resistance level be taken out next, we reckon that the share price could extend its gains towards our previous RM4.23 target price. On the flipside, a violation below RM3.90 could instead signal a bearish reversal. Hence we recommend that traders, who had previously bought into the stock earlier, raise the stop-loss level from RM3.38 previously to RM3.87.

Source: Kenanga