Muhibbah’s near-term technical outlook is clearly bearish now after its share price had retraced by about 25% in just four trading days. In this report, we are identifying the strong support levels which could potentially stop the share price carnage, at least temporarily. The RM1.30 and RM1.20 levels represent the stock’s two major lows for the year which would provide it with strong technical support.
Meanwhile, no signs of reversal can be detected at the current level. So, if one of these mentioned levels is violated, the breakdown is expected to attract another round of panic selling. In terms of resistance, the stock would have to face a few formidable hurdles. Tough resistance is seen at the RM1.53, RM1.67, RM1.87 and RM1.93 levels. Nevertheless, as far as the stock’s longer term technical outlook is concerned, it is still a Neutral until it takes out the RM1.20 level.
Meanwhile, no signs of reversal can be detected at the current level. So, if one of these mentioned levels is violated, the breakdown is expected to attract another round of panic selling. In terms of resistance, the stock would have to face a few formidable hurdles. Tough resistance is seen at the RM1.53, RM1.67, RM1.87 and RM1.93 levels. Nevertheless, as far as the stock’s longer term technical outlook is concerned, it is still a Neutral until it takes out the RM1.20 level.
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