Yesterday, MISC declined 11.0 sen or 1.31% to close at RM8.30, breaking down from its Lower Bollinger Band. After hovering at its +2SD regression line, it has undergone heavy profit taking hit by recent news of lower Asian shipping rates, which could potentially adversely affect the company’s outlook. Technical picture remained dull as MACD has performed a negative crossover and RSI is still heading south. However, Stochastic indicator has already entered the oversold region, signaling that downside risk could be limited from here. Should there be any reversal signal, we believe it would be a good buying opportunity for investors if the share price consolidates further to its -2SD regression line of RM8.07 (R1) as this suggests potential rebound, historically.

Source: Kenanga Research - 13 May 2015