Apr 28, 2015

Muhibbah Engineering - Technical Analysis

Muhibbah Engineering Bhd – Stock Code 5703 Main Board

Last Price: RM2.64 +0.13   Support Level: RM2.41, RM2.29
Resistance Level: RM2.76, RM2.80, RM2.86, RM2.90, RM2.96, RM3.00, RM3.1, RM3.27, RM3.41, RM3.50      Entry Level: RM2.64 – RM2.66


Technical Analysis

MUHIBAH (5703) rebounded from its intra-day low of 2.52 to close higher at 2.64 after hitting the intra-day high of 2.76. Technically, the chart of MUHIBAH formed a bullish white candlestick with increasing volume, indicating strong buying interest came into the stock yesterday. It breaks out from the consolidation range forming a Rectangle pattern breakout. MACD swung upward and is above the signal-line, and its histogram also extended upward strongly, indicating an increased in momentum to the upside and a buy signal. RSI (14) rose to 80.7 from 74.2, indicating the stock is turning very bullish and is overbought. Stochastic rose to 75.5 from 75, and is above the slow stochastic line, indicated the stock is turning stronger after recent consolidation. The medium and long term trend of MUHIBAH is up, and the short term trend is up with the 5-day SMA staying above the 10-day SMA and both are above the 30-day SMA, and a confirmed breakout above RM2.76 will see an upside target of RM2.80, follow by RM2.86, RM2.90, RM2.96, RM3.00, RM3.1, RM3.27, RM3.41 and RM3.5.

Since the short term trend is bullish, day traders with shorter time frame perspective may ride on the short term bullishness and buy on breakout level (RM2.76). Those with lower risk appetite should wait at the side-line and buy on the dip.

Price Objective
Short Term – target price at (RM2.8, RM2.86, RM2.9, RM2.96, RM3.00), stop loss (RM2.40)
Mid Term – target price at (RM3.1, RM3.27, RM3.41, RM3.50), stop loss (RM2.28)

by SJ Securties

The Company is principally engaged in the provision of oil and gas marine infrastructure civil and structural engineering contract works. The subsidiaries are involved in design manufacture commission repair maintenance and customisation of cranes offshore supply vessels and anchor handling tugboats for oil and gas industry. The associates are mainly involved in international airport concessions in Cambodia and road maintenance concessions in Malaysia.