Recall that earlier this month (3rd April), we highlighted MFLOUR when the share price managed an upside breakout above all three SMAs (20-, 50- and 100-day SMA) for the first time in two years. Within days of our technical highlight, MFLOUR had risen from RM1.27 to an intraday high of RM1.41 (+11%) before gradually retreating to RM1.32 yesterday. The recent price weakness and sideways consolidation have given rise to a "Symmetrical Triangle" on the daily chart. Traders should watch for an upside breakout of this bullish pattern, which would mark a resumption of the uptrend. Should this be the case, the share price could potentially advance towards RM1.48 next (target 3 bids below this price). Meanwhile, MFLOUR also looks well supported, and a RM1.27 stop-loss should be sufficient.

 

Source: Kenanga