Friday, January 08, 2016

Muhibah: Riding on Favco's Coattail

Over the past 2 weeks, Favco has risen to a high of RM3.20 after it broke above its downtrend line at RM2.65-2.70. Muhibah, which owns 60% of Favco, has broken above its downtrend line at RM2.20 about 6 weeks earlier. After an initial rally to RM2.40, Muhibah has rolled back to the breakout level of RM2.20 & remained there. This week - probably prompted by the rally in Favco - Muhibah is once again on the move.

Based on technical breakout, Muhibah could be a trading BUY. Please exercise careful discretion in your trading given the present volatility in the market. Good luck!

Chart: Muhibah & Favco's weekly chart as at Jan 7, 2016_3.00pm (Source: ShareInvestor) 

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Muhibah & Favco.

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