Yesterday, MMODE surged 5 sen (+7.25%) to close at RM0.74. The stock attracted investors’ interest as the company is currently in the midst of transferring their listing to the Main Market. A breakout from its 8-month downtrend resistance line is observed at RM0.712 with MACD trending up and looking poised to stage a positive crossover the Signal line, indicating a positive outlook ahead. Meanwhile, momentum appears strong with positive readings gathered from the Stochastic and RSI indicators. We believe follow-through buying interest could rally the share price towards RM0.76 (R1) and a breakout could push it higher to the RM0.83 (R2) level.

 

Source: Kenanga