MAYBULK’s share price has been on a year-long uptrend amid analysts’ expectations that the Dry Bulk Shipping rates have bottomed out in 2013. In fact, a “Broadening Formation” has taken shape on the daily chart and MAYBULK seems poised for further gains over the next few months. The nearer term outlook is equally bullish, particularly with yesterday’s 10 sen spurt (closing price: RM2.06) which caused MAYBULK to break above the crucial RM1.95 multi-month resistance. Based on the chart pattern, we expect follow-through momentum to carry the share price towards RM2.31 (R2) fairly soon before an eventual retest of its 2-year high of RM2.63 (R3). Meanwhile, strong downside support is located at the former RM1.95 resistance-turned-support (S1), and RM1.78 (S2) further down.

 

Source: Kenanga