MKH rebounded after hitting the near-term support level of RM2.77 (S1) while also breaking out from its 50-day SMA level to suggest an uptrend movement. Meanwhile, positive buying momentum was showcased by both Stochastics and RSI indicators, with the former reversing from oversold territory. Based on the rebound signal (emergence of Stochastic from oversold region), we view that this could be a good entry level. Thus we are issuing a ‘Trading Buy’ call on the stock, with Target Price of RM3.05 (R1) which is in line with the +1SD of regression and also the next immediate resistance level.

Source: Kenanga