Mah Sing is currently consolidating the strong gains recorded on 17 Oct 2012 within the broad uptrend channel that we have identified in the above chart.
As the consolidation takes place in the middle of the channel, traders can take the opportunity to accumulate Mah Sing’s shares while the stock is still in a consolidation mode, and bet for it to eventually surpass the recent major peak of RM2.47 to create another higher high. Upside target is pegged at the RM2.73 level. Traders may cut losses should the price fall below the RM2.25 support floor of the consolidation, as a break below this level indicates a longer consolidation phase, which may push the price down towards the RM2.19 opening point of 17 Oct 2012’s session.
To the upside, resistance levels at expected at RM2.40, RM2.47, RM2.55 and RM2.73. Meanwhile, supports can be found at the RM2.25 and RM2.19 levels. In the near-term, Mah Sing’s share price is expected to rise further until the uptrend channel is violated.
Source: OSK
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