Recall that in 25 July 2014, we placed a “Trading Buy” call on MFLOUR as the share price broke out from its one-year uptrend channel resistance level of RM1.85. However, the bullish view is no longer valid due to the recent poor market sentiment. The key indicators (RSI, Stochastic and MACD) are trending downwards, indicating the strong selling pressure. There has been no sign of reversal yet, as such, we are issuing a “Stopped-out” call on MFLOUR at RM1.76.

 

 

Source: Kenanga