MFLOUR advanced 10 sen (+5.52%) with a spike in volume to settle at RM1.91. Investors turned bullish on the stock, as it reported robust 1Q14 results and its capacity expansion in Indonesia may lead to higher earnings going forward. Technically speaking, MFLOUR has broken out from its one-year uptrend channel resistance level of RM1.85. Key indicators (MACD, Stochastic, RSI) are trending upwards, signaling strong buying interests. We believe follow-through buying interest could rally the share towards RM2.00 (R1) and possibly RM2.10 (R2) next. We are placing a “Trading Buy” call on this stock with a target of RM2.30 (3 bids below our measurement objective of RM2.33) while employing a strict stop-loss at RM1.82 (3 bids below the RM1.85 (S1) level).

 

Source: Kenanga