To recap, we previously issued a Trading Buy call on MUDA (6th March 2015, Last Price: RM1.72) as the share price broke out from a ‘Pennant’ chart pattern. In just one month, the share price resumed its uptrend rally to surpass our target price objective of RM1.92. In tandem with the thin trading volume, the technical picture looks likely to consolidate at this level. Indicators are also pointing towards consolidation, as the Stochastic indicator had entered overbought territory while RSI has started to roll over from its overbought region, implying that the recent uptrend could be capped from here. Thus we are taking this opportunity to lock in our profit (c.13%) at RM1.94.
Source: Kenanga
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