MUDA’s share price increased 8 sen (3.43%) yesterday on higher trading volume after a strong rally since Jan-14. Recall that we placed a “Trading Buy” call on the stock at RM1.90 on 24th-April due to strong earnings which caused a breakout of a “Bullish Pennant” chart pattern, hinting that the share was poised to enter into another round of rally. The current technical picture does not display signs of momentum waning as all 3 SMA’s are on upward trajectory. RSI and Stochastic are also pointing upwards, but are in overbought region, indicating further gains could be limited. MUDA’s share price has rallied by 26.8% since our last call. As the share price has hit our target price of RM2.43 during the day, we are placing a “Take Profit” call on this stock.

Source: Kenanga