• Technical BUY with +10.5% potential return
• Last price: RM2.75
• Target price: RM2.99, RM3.04
• Support: RM2.69
• Stop-loss: RM2.68

BUY with a target price of RM3.04 and stop-loss at RM2.68. Based on the chart, MCH has formed a higher high and higher low, which indicates an uptrend pattern. On yesterday’s movement, the stock price managed to hit the breakout level of RM2.79 but closed lower at RM2.75. This is supported by an uptick in the RSI, and the MACD is on a bullish crossover. In addition, the +DI has crossed above the -DI, indicating a stronger uptrend ahead. We peg our upside targets at RM2.99 and RM3.04 in the near to medium term.

Expected Timeframe: 2 weeks to 2 months.

Source: UOB Kay Hian Research - 3 Aug 2017