Recall that on 9/5/14, we issued a ‘Trading Buy’ call on MPI when it broke out from the “Symmetrical Triangle” chart pattern. Yesterday, MPI hit our technical target price of RM5.00 with low trading volume. Due to a lack of fresh catalyst, we believe MPI could be due for sideways consolidation. Resistance at RM5.00 is expected to be strong, and the MACD indicator is also trending below the zero line. Coupled with the flattish readings from RSI indicator, MPI is likely to pause for a breather before resuming its uptrend. Thus, we are placing a ‘Take Profit’ call on the stock, translating into 14.9% upside gain.
Source: Kenanga
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