Following the bullish “Flag” breakout (see technical report dated 7th Jan 2014 @ RM3.27), the share price has rallied as much as 28% to yesterday’s closing price of RM4.19. Despite the stellar run-up, the overall technical picture has yet to show signs of weakness. In fact, MPI confirmed yet another breakout yesterday, with a 25 sen spurt on high volume. From here, we anticipate further momentum buying towards the measurement objective of RM4.75 next. Traders looking to buy the stock should target RM4.71 (representing 3 bids below TP). A protective stop-loss should also be placed 3 bids below the RM3.82 support level (at RM3.79) to offer a 52:40 reward/ risk ratio.

 

Source: Kenanga