MPI gained 8 sen (1.4%) to RM5.75 yesterday on average trading volume. All three SMAs are slowly heading upwards in light of renewed buying interest. Despite nearing overbought levels, key indicators remained positive as both RSI and Stochastics are trending upwards. Chart-wise, a bullish ‘Flag’ chart pattern is taking shape after consolidating for the past few days, and the recent uptick in indicators have led us to anticipate a breakout from the bullish ‘Flag’ pattern. We advocate day traders to take this opportunity to enter the stock while anticipating a technical breakout on follow-through buying interest with a ‘Flagpole’ measurement target price of RM6.40.

Source: Kenanga