On the daily chart, MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD (MHB) is currently exhibiting a bearish technical profile. For instance, the RSI's position below the midpoint indicates that the stock may be facing selling pressure. Additionally, the negative value of the MACD signals that the short-term average is below the long-term average, indicating a downtrend in the stock's momentum. Looking at the moving averages, all are above the current price, suggesting that the stock is trading below key long-term and short-term averages. These averages, which portray bearish trends, could act as dynamic resistance. Market sentiment anticipates MHB's price potentially testing the support level at 0.45. A successful breach below this level could amplify the bearish momentum, potentially leading to a retest of support at 0.415. Conversely, failure to breach the critical support at 0.45 could trigger a rebound, with the nearest resistance level residing at 0.48. Our research house recommends a BUY call on MHB, with a target price of RM0.94.
 

Source: BIMB Securities Research - 17 Jul 2024