Closed:                    RM1.04

Resistance:              (R1) RM1.12 /(R2) RM1.38

Support:                  (S1) 97 sen /(S2) 81 sen

Muhibbah Engineering (M) Bhd (5703) rose 15 sen to RM1.04 yesterday to breach the 200-day moving average (orange line).

Technical indicators are encouraging with the MACD climbing above its signal line and the RSI is rising in the overbought zone.

After yesterday’s surge, the stock could pull back on profit taking but has a chance to extend its rebound if share price sustains above its immediate support of 97 sen marked by the 200-day moving average (orange line).

For the downside, we advise traders to cut loss if the price falls below the second support of 81 sen, marked by 100-day moving average (pink line).