MCE’s uptrend may be extended, after testing the immediate resistance.
Yesterday (May 22), the stock charted a bullish candlestick on high volume, signalling that the momentum is turning bullish again, RHB Retail Research said in a note today (May 23).
Should momentum follow through and push the stock above the MYR2 resistance, a bullish bias will emerge. The bulls would then set their sights on the next resistance of MYR2.15, followed by MYR2.30.
Towards the downside, breaching below the MYR1.85 support will mark the beginning of a bearish structure.
Magni-Tech Industries is also seen testing the 6-month resistance, as it may be set to undergo a bullish breakout.
Note that the MYR1.90 level has been the resistance for the past six months.
The stock has also been charting “higher highs” on strong volume. If it breaks past the resistance, expect this to trigger a strong bullish momentum.
In this case, the stock would climb towards MYR1.96, followed by MYR2.05.
In the event it drops below the MYR1.82 support, this would signal that a bearish setup has formed.
