After ranging within a mild uptrend channel for 5 months, MRCB has finally surged above the channel resistance yesterday with its 7 sen advance to RM1.63. Despite the collective 17.8% gain this week, we believe that the stock has further upside potential. In fact, the strong trading volume and key indicators are supportive of a further move higher, in particular, the MACD which has just managed a bullish Signal line crossover. As such, we believe that the stock could extend its gain towards the RM1.76 target price, while downside support is likely to be limited to the former channel resistance now turned support (RM1.57). Traders who wish to buy into the stock should target RM1.73, while a stop-loss of RM1.54 should be placed.

 

Source: Kenanga