Post elections, MAHSING’s share price registered seven consecutive bullish sessions with a collective 21.74% upside gain. However, we believe that the rally may have been overdone, and MAHSING’s share price is starting to show early signs of profit taking. Of particular concern, a bearish “Doji Star” candlestick pattern has taken shape amid high trading volume. This potentially signals that MAHSING may be toppish at these levels. In fact, we would not rule out the possibility of a near-term trend reversal from here. Indicator-wise, both the 14-day Stochastic and the RSI are heavily overbought. As such, we recommend that traders lock in prior gains at these levels, and perhaps revisit the stock should the share price return to the RM2.40-RM2.50 support levels.
Source: Kenanga