MPI may have broken out

MPI has broken above its downtrend line on December 13 last year at the RM10.80 level (see Chart 1). Today, it has surpassed its strong horizontal resistance of RM11.10/20 (which is MPI's last 1 year's high). At 4.00 p.m., MPI was trading at RM11.30. With this latest breakout, I believe MPI is likely to commence its upward move in a more aggressice fashion.



Chart 1: MPI's weekly chart as at Jan 11

A similar development was also observed in Unisem. This stock has broken above its downtrend line at the RM1.65 level on November 10 last year (see Chart 2). Yesterday, it has also broken above its strong horizontal resistance at RM2.08 (also, its last 1 year's high) to close at its high of RM2.17. Today, it continues to go higher & at 4.00 p.m., it was trading at RM2.30.



Chart2: Unisem's weekly chart as at Jan 11

Based on the latest breakout in MPI, I believe that the stock is a good BUY for the medium-term investment as well as for short-term trading.