MUHIBAH's share price has broken out from a “rising wedge” chart pattern early this month, thereafter going through minor consolidation for the past few days. Yesterday, MUHIBAH surged 7 sen (+2.11%) and closed at RM3.39 with a white “Marubozu” candlestick, indicating bullish buying pressure. Key indicators (Stochastic and RSI) have started turning positive, suggesting that bullish momentum has started to pick up. We reckon that follow through buying interests could lead the share price to retest its previous high of RM3.52 (R1) and possibly RM3.65 (R2) next. We are placing Trading Buy into the stock with a target of RM4.17 (3 bids below the flagpole measurement of RM4.20), while employing a stop-loss at RM3.13 (3 bids below the RM3.16 (S1) level).

 

Source: Kenanga