MKLAND suffered a temporary setback in share price, despite having announced a solid set of 2Q14 results and a decent dividend. The share price broke out from the “Ascending Triangle” chart pattern last month, which we believed would be a sign for another bullish movement in near term. Things didn’t turn out as expected, and we believe that the selling is overdone. The Stochastic indicator is now in the oversold zone, hence we believe that a rebound over the near-term is imminent. Immediate support level is now pegged at RM0.398, where we believe that bargain hunting activities would emerge. Traders should adopt a “Buy-On-Weakness” strategy if it falls to the aforementioned support level and target to take profit at RM0.52 (“Ascending Triangle” measurement target). Meanwhile, a protective stoploss should be placed at RM0.385 (3 bids below the RM0.398 trigger line).

 

Source: Kenanga