Stock Picks: Ranhill Utilities And Dagang NeXchange

HB Investment Bank Bhd (RHB Research) has identified Ranhill Utilities Bhd and Dagang NeXchange Bhd (DNeX) as its latest technical trading ideas, citing strengthening bullish momentum following key resistance tests and breakouts. RHB Research said Ranhill Utilities could extend its gains after testing the immediate resistance level with strong trading volume. The stock formed a long lower shadow in the previous session, indicating buying interest had emerged and bullish momentum was strengthening. The research house said a decisive move above the RM2.05 resistance level could pave the way for further upside towards RM2.15, followed by RM2.25. However, it noted that a fall below the RM1.95 support level would weaken market sentiment and could trigger a renewed correction. Meanwhile, Dagang NeXchange is expected to maintain its upward trajectory after staging an upside breakout. RHB Research said the counter registered fresh positive price action and closed above the RM0.46 resistance level, signalling that bullish momentum was gaining strength. Following the breakout, the stock may advance towards the next resistance at RM0.50, with a further upside target of RM0.54, it said. The research house added that a break below the RM0.42 support level would dampen market sentiment and open the door for a correction.