MBM Resources’ share price – encouraged by buying interest at the 11th hour – jumped higher on increased trading volumes. With the latest price action, we think this is the beginning of a new up wave. As long as the stock can trade above the resistance level marked at MYR3.45, we think it can move higher to test the next hurdle at MYR3.68 – this is followed by the MYR3.90 level. A downside breach of the MYR3.20 support will negate this expectation, and should lead to a stock price correction.

Source: RHB Securities Research - 4 Jan 2021