Mar 29, 2016

MAYBULK – Breakout From 1 Year Downtrend

Stock Code: 5077

malaysian bulk chart analysis

MAYBULK recently garnered investors' interest again, surging 10.0 sen (16.0%) to close at RM0.725 on the back of strong volume breakout from its 1-year downtrend resistance line. We observe that the resurgence of investors’ interest in MAYBULK came in tandem with the rebounding Baltic Dry Index (refer to Figure x), which the share price heavily correlates to. Indicator-wise, the MACD histogram has staged a strong bullish convergence breakout from its trend line. Besides, an uptick by both Stochastic and RSI also suggest supportive bullish momentum. We reckon that MAYBULK provides a trading opportunity and it is expected to see its share price testing RM0.775 (R1) and possibly RM0.83 (R2) next. Immediate support is seen at RM0.62 (S1) and RM0.52 (S2) next. Nonetheless, we advocate conservative traders to wait for a technical pullback before entering the stock as the stock usually takes a breather after a strong surge (as circled on chart).

source:  Kenanga Research – 29/03/ 2016

The Company provides marine transportation through its fleet of dry bulkers and product tankers and ship management services.