MBSB has a bullish breakout

MBSB has broken above its ascending triangle (ABC) at the RM1.05 level as well as its medium-term downtrend line at the RM1.12 level (see Chart 1 below). This breakout was further confirmed today, with the share price surging 17 sen to RM1.30 on volume of 2.6 million units done as at 10.00 am.


Chart 1: MBSB' daily chart as at April 14, 2008 (courtesy of Quickcharts)

Interestingly, the stock occupying the top volume spot is RCECap, which gained 3.5 sen to RM0.635, on volume of 3.8 million units done as at 10.00 am. These 2 stocks were rumored to be involved in some corporate exercises a few months back. From Chart 2 below, we can see that RCECap has also broken above its short-term downtrend line at the RM0.55 level as well as a horizontal resistance at RM0.57 level.


Chart 2: RCECap' daily chart as at April 14, 2008 (courtesy of Quickcharts)

Is the corporate exercise involving these 2 stocks about to be announced? Based on the bullish breakout, these 2 stocks (especially, MBSB) could be a good trading BUY. As MBSB has run up quite a bit, you may like to buy after the share price has pulled back.

Note: MBSB reported a net profit of RM53.2 million on a turnover of RM358.8 million for FYE31/12/2007. RCECap reported a net profit of RM38.0 million on a turnover of RM95.8 million for 9-month ended 31/12/2007. MBSB's full year EPS & RCECap's 9-m EPS stood at 15.43 sen and 5.87 sen, respectively.