Yesterday, MSC advanced 17 sen to close at RM3.03 after releasing impressive 4Q13 results, which reversed its prior three quarters of losses. Investors were clearly excited, with trading volume notching a 6-month high (albeit still low) and the share price breaking above its multi-year downtrend resistance. With the crucial breakout move, we reckon that MSC is poised to commence a major bullish reversal. From here, we expect MSC to continue its bullish momentum towards RM3.28 (R1) next. Should this Fibonacci retracement level (23.6%) be taken out, further gains can be expected towards RM3.50 (R2) and possibly RM4.00 (R3) further up. Meanwhile, a short-term bottom has taken shape at the RM2.66 (S1) level, where we expect strong buying support to emerge.
Source: Kenanga