MMSV has been on a consolidation phase after retreating from its high of RM0.89 (R2). The primary trend remained up as MMSV is hovering above its uptrend trend support as well as 50-day and 100-day SMAs. Buying interests is picking up as showcased by both Stochastic and RSI indicators, with the former reversing from the oversold territory. Should the buying interests persist, we reckon the stock may retest the resistance of RM0.89 (R2) (which is the +2SD regression line resistance level which coincides with 100.0% Fibonacci Retracement level). Hence, we are issuing a “Trading Buy” call on MMSV with a target price of RM0.89 (R2), with a protective stop-loss level of RM0.75 (S1).

Source: Kenanga Research - 3 Jun 2015