KUALA LUMPUR: OSK Research said despite Muhibbah Engineering experiencing a strong intra-day rally with heavy volume on Monday, Oct 11, its near-term and mid-term technical outlooks remain bearish.
"It is very obvious to us that the stock will still continue to drift lower going forward as long as it continues to trade below the previous major peak.
Hence, the stock's near-term technical landscape will only be shifted to bullish once it successfully cracks above the previous major peak, which is situated at the RM1 level," it said.
The research house said a break above the RM1 level would trigger a Buy signal. As its share price only eked out from the RM1 level on Monday, it is still too early to confirm the breakout from this level.
"Anyhow, there is a possibility that the stock will start to consolidate yesterday's strong gains before challenging the previous major peak. At above the RM1 mark, look for the RM1.11 level as the next resistance. To the downside, look for an immediate support at the 92 sen level followed by the 88 sen level," it said.
"It is very obvious to us that the stock will still continue to drift lower going forward as long as it continues to trade below the previous major peak.
Hence, the stock's near-term technical landscape will only be shifted to bullish once it successfully cracks above the previous major peak, which is situated at the RM1 level," it said.
The research house said a break above the RM1 level would trigger a Buy signal. As its share price only eked out from the RM1 level on Monday, it is still too early to confirm the breakout from this level.
"Anyhow, there is a possibility that the stock will start to consolidate yesterday's strong gains before challenging the previous major peak. At above the RM1 mark, look for the RM1.11 level as the next resistance. To the downside, look for an immediate support at the 92 sen level followed by the 88 sen level," it said.
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