MAICA caught investors’ eyes after they proposed a 3-for-1 rights issue to finance the acquisation of SunSuria landbanks, which could further compliment MAICA's new venture into property development business (Refer to On Our Radar report on 27/2/2014). Following yesterday’s bullish move, MAICA has broken out of its channel resistance of RM1.40 to confirm a ‘Bullish Flag’ chart pattern, indicating a continuation of its prior uptrend. Judging from the strong trading volume and positive momentum indicators, we believe that MAICA could potentially commence a rally towards RM1.75 (R1), its all-time high level level fairly soon. Traders who look to buy into the stock should aim to take profit at RM2.07 (3 bids below the RM2.10 “Flagpole” measurement objective), whilst employing a stop-loss of RM1.37 (also 3 bids below RM1.40 support).

 

Source: Kenanga