MUDA surged 15 sen or 9.6% to RM1.72 yesterday on strong volume. Technically, the share price broken out from ‘Pennant’ chart pattern and all its MA trend lines to suggest a bullish uptrend outlook. Elsewhere, strong buying momentum was observed with the Stochastics has reversed from its oversold region to imply a bullish reversal, while RSI is also trending northwards implying buying momentum is pilling up. Taking in all the bullish note, we are calling for ‘Trading Buy’ on the stock with a target of RM1.92 (3 ticks below our measurement objective) on anticipation of a follow-through buying interest, while a strict stop-loss is set at RM1.48 (S2).

Source: Kenanga