Mieco may have a bullish breakout

Mieco, the smallest of the 3 listed producers of Particleboard & MDF, has finally rallied. As at 3.25pm, it was trading at RM0.53. It broke above the horizontal resistance at RM0.49-50 today. The next resistance is at RM0.75-80 and thereafter at RM1.00.


Chart: Mieco's weekly chart as at Nov 9, 2009_3.25pm (Source: Quickcharts)

The latest available results for Mieco is for QE30/6/2009. Its results for QE30/9/2009 will be announced this month. In line with the turnaround witnessed in Hevea and improved performance in Evergreen, one can expect a positive results for Mieco for QE30/9/2009.

Based on the above technical breakout, Mieco could be a trading BUY.