Monday, April 4, 2011

Stock To Watch: MMCCORP Is In A Recovery Mood (RM2.78- Trading Buy)

MMCCORP is a good proxy for the upcoming election play, given its exposure to various infrastructure developments under the ETP, positive anticipation of the KL MRT and listing of Gas Malaysia. Based on Bloomberg estimates, MMCORP is slated to record a 26% CAGR from FY10-13 amid the maiden contribution as project manager of the MRT project. The energy division may be potentially catalysed by contract win, should they win the second 1,000MW coalfired power plant in Tanjung Bin.

After peaking at 2011’s high of RM3.22 on 10 January, MMCCORP corrected to as low as RM2.57 on 15 March. However, it staged a decisive breakout above the descending wedge resistance and the 200-d SMA (RM2.76) to end at RM2.78 last Friday.

Short term uptrend remains firm, given that both RSI and MACD are expanding its uptrend and gaining momentum. Accumulate as we expect prices to swing towards the RM2.83 (100-d SMA), RM2.89 (50% FR) and RM2.97 (38.2% FR). The next target is RM3.22. Major support levels are RM2.70 and RM2.68 (mid Bollinger band) and RM2.65.

Remember to put a stop below RM2.65.

MMCCORP Daily Chart Indicates Investors Might Have To Sell Into Rally Amid Overbought Technical Readings.
MMCCORP 05-04-2011

MMCCORP Weekly Poised To Retest Upper Bollinger Band On Bullish Technicals.
MMCCORP 05-04-2011a

Source: HLeBroking

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...