Expectations of recovering sales and an attractive dividend yield of 7% sent MPI 10 sen higher to close at RM3.27 yesterday. Consequently, MPI has broken out of a classic “Bullish Flag” pattern to mark the start of another run-up. Key indicators such as the Stochastic and RSI have also hooked upwards into bullish territory while the MACD appears poised to complete a signal-line crossover. With trend probability firmly biased to the upside, we reckon that MPI could potentially extend its gains to RM3.60 next. Look to take profit 3 bids below this targeted level (at RM3.57), whilst placing a stop-loss at RM3.01.

 

Source: Kenanga