RHB Investment Bank Bhd (RHB Research) has highlighted Trip.com and Xiaomi as key stock picks for the day, both showing signs of strong bullish potential based on recent technical movements.

Trip.com is attempting to resume its upward trajectory, having tested the immediate resistance level at HK$490 with strong trading volume. According to RHB Research, the stock has bounced off the 21-day simple moving average (SMA) line, suggesting that a break above this resistance could trigger a bullish bias. If this occurs, fresh buying pressure may drive the stock towards HK$520, with a further target of HK$550. On the flip side, a drop below the HK$450 support level would signal a potential shift towards a bearish "lower low" pattern.

Similarly, Xiaomi is poised to extend its bullish movement, after climbing above the HK$24 resistance level on strong volume. RHB Research reports that a bullish candlestick has been formed, confirming the bullish setup. The rising trading volume in tandem with the share price indicates strong momentum. Following this breakout, the stock is expected to challenge the HK$26 level, with HK$28 as the next potential target. However, a decline below the HK$22 support level would invalidate the bullish outlook and could lead to a corrective phase.

Both stocks are showing strong momentum, making them key counters to watch for potential near-term gains.