MUDAJYA (Not Rated). MUDAJYA’s share price is finally showing signs of a reversal after it rose 4.5 sen (4.9%) yesterday to finish at RM0.97. On the daily chart, the share price had been on a downtrend since July, having almost halved from a high of RM1.30 (29-July) to as low as RM0.725 (30-Nov). Recent months’ attempts at a recovery were short-lived. However, the share price has now begun to show more definitive signs, evidenced by yesterday’s breakout of its 3-month sideways zone as well as an upward trending MACD. From here, we expect the share price to be positively biased towards RM1.00/1.01 (R1), and possibly RM1.09 (R2) next. Support is solid at RM0.90/RM0.95 (S1) although a break below this level would be highly negative for the stock.

MRCB (Not Rated). MRCB rose 12.0 sen (7.89%) to stage a breakout from its ‘Ascending Triangle’ chart pattern, closing at RM1.64 yesterday. With the strong volume technical breakout, MRCB could look to gain traction and trend further up from here. Nonetheless, with the deep overbought condition displayed by the RSI and Stochastic, we do not discount the possibility of the stock taking a healthy breather before resuming its uptrend trajectory. Besides, there are currently a cluster of overhead resistances, notably the RM1.70 (R1)/RM1.78 (R2), where a decisive breach above the aforesaid resistance is needed for the stock to pursue further heights in the mid-to-long term. Key support levels are currently noted at RM1.54 (S1)/RM1.42 (S2).

Source: Kenanga Research - 22 Mar 2017