Muhibbah Engineering’s stock formed its third white candle in 4 days and closed at its 2-week high yesterday.
“The stock also broke out of its 3-week bullish flag pattern and the resistance trend line drawn from the year high at RM0.81, backed by a pick-up in trading volume,” said CGSCIMB.
Prices may soon see a lift off from here after staying above all the Exponential Moving Averages (EMA). Closing above RM0.70 would give their bullish view a big boost.
The Moving Average Convergence Divergence (MACD) is about to turn up again after testing the zero line while the Relative Strength Index (RSI) has stayed above the 50pts level. Both indicators suggest that the bulls have the wind behind their back.
“We think that aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM0.63,” said CGSCIMB.
Towards WCT Holdings, the stock rose and broke out of its 3-week triangle pattern yesterday, forming a hammer-like candle in the process.
“Prices closed at its 5-month high on rising trading volume. With the breakout taking place above all the EMAs, we believe that follow-through buying may lift prices to a new year high soon,” said CGSCIMB.
Both the MACD and RSI are strengthening again, indicating that the bullish momentum is rising now. CGSCIMB suggests that aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM0.43.
