MSC had recently divested all its mining subsidiaries in Indonesia to be more geographically focused in its tin mining and smelting businesses. Yesterday, MSC rose 8 sen (+2.46%) to settle at RM3.33. Chart-wise, MSC has formed a “Marubozu” candlestick after being on a downtrend for the past 3 months. The 20-day and 100-day SMAs had started to converge, suggesting a higher volatility moving forward. All key indicators (MACD, Stochastic and RSI) are hooking upwards, suggesting that buying momentum is pilling up. We believe that followthrough buying interest on the stock could lend a hand to a possible rebound play from its recent downtrend, rallying the share towards its next resistance level of RM3.36 (R1) and possibly RM3.52 (R2) further.

 

Source: Kenanga