• Based on daily chart, MMS Ventures Berhad (MMSV) is likely to see short-term reversal of trend as most indicators are pointing to downside bias. Note that share price was facing stiff resistance near RM0.68 (red horizontal line) last Friday. Coupled with “Dark Cloud” candlestick pattern near the resistance, selling momentum is picking up pace. Apart from that, the 3 Gaps above signal potential weakness in recent uptrend.
• Noticeably, MACD and its histogram are declining, signaling a potential technical retracement. RSI is hooking down from 68% to 56% level since last Thursday, indicating stronger selling pressure. Slow stochastics depicts overbought signal. Thus, reading from above oscillators shows that share price is about to retrace.
• With decreasing volume, share price is expected to retrace towards RM0.59 (Mid-Bollinger band), RM0.57 (50-d SMA) and RM0.535 (Exhaustion gap). Resistances are situated at RM0.64 (R1 Pivot Points), RM0.66 (R2 Pivot Points) and RM0.68 (red horizontal line).

Source: Hong Leong Investment Bank Research - 27 Jan 2015