Market sentiment for MKH is buoyed by news that it is negotiating to acquire two more parcels of land totaling 20,000ha in East Kalimantan for oil palm cultivation, which could more than double its current 15,900ha of oil palm estate, which has just come into maturity, according to media reports. As a result, MKH’s share price has edged up to a new high recently after breaking out above the previous strong resistance @RM2.78 with escalating volume. We are upbeat on the breakout as key indicators are all biased to the upside. The next resistance is capped at RM3.00 followed by RM3.18 and RM3.30 next. On the flip side, an immediate underlying support is pegged at RM2.68 (20-day SMA).

 

Source: Kenanga