It looks like little has changed on MRCB's longer-termtechnical outlook since our previous update in September last year when thestock violated the mid-term uptrend line beginning from the major low createdin October 2008. The stock may be re-testing the 200-week MAV line afterviolating the short-term uptrend line, which basically extends the downtrend thattook a breather during the Sept 2011 ' Jan 2012 period. In view of the stock'scurrent weakness, we suggest that traders avoid the shares. We are eyeing the200-week MAV line as the downside target.

In our previous note on MRCB, the stock was at that timepotentially creating a 'Long Leg Doji' or 'Hammer' at the 200-week MAV line,but it eventually ended up creating a 'Spinning Top' at this  line instead. The stock  also subsequently crackedabove the short-term downtrend line and started rebounding during the Sept2011-Jan 2012 period.

Nevertheless, since MRCB violated the short-term uptrendline two months ago, we think the above-mentioned rebound was just a  breather for the sharp fall resulting fromthe major breakdown  from the mid-termuptrend line. Hence, we advise the traders to sell MRCB shares or avoid thestock. It appears as if the stock will be re-testing the 200-week MAV line whichnow lies at the RM1.53 level. Should  our expectation  materialize, it simply means that  thestock  is extending  its downtrend after violating the mid-termuptrend line.

Immediate support is found at the RM1.63 level whilecritical support lies at the 200-week MAV line. To the upside,  the RM1.95, RM2.11 and RM2.27 are theresistance levels.

Source: OSK188