Earlier this month, we recommended a ‘Technical Buy’ (5th March @ RM2.60) on MBSB when the share price confirmed a bullish “Ascending Triangle” chart pattern. In the subsequent few days, follow-through momentum had carried the share price to as high as RM2.80 (+20 sen over 4 trading days), though it fell short of the RM2.83 measurement price which we were anticipating. The share price had since surrendered some of its earlier gains, and a bearish “Double Top” reversal pattern is beginning to take shape. The MACD-Signal line has also completed a negative crossover to signal that momentum is weakening. Hence, we suggest that traders adjust the initial stop-loss of RM2.38 to RM2.62, representing 3 bids below the “Double Top” trigger-line. Meanwhile, the RM2.83 target price remains unchanged.

 

Source: Kenanga