After a gapping breakout earlier this month, MBSB advanced a further 31 sen to all close at all-time high of RM3.23 (13-May). Subsequently, MBSB went ex-dividend on 14-May, and retreated back to the crucial RM2.84 resistance-turn-support level. Of note, the share price appears to have found solid support at this level, having twice rebounded after a brief downside retest on the 14th of May as well as more recently on the 27th of May. In fact, MBSB has confirmed a bullish “Hammer” reversal pattern this week, and we believe that the share price is poised for a strong rebound towards RM3.24 and RM3.38 next. As such, traders may consider
a technical set-up with a target price of RM3.35 (3 bids below RM3.38 resistance) while a stop-loss should be placed at RM2.83. That implies a potential upside of 11.7% against 5.6% of downside risk.
Source: Kenanga