MMC has broken above its short-term downtrend

"MMC Corp Bhd said yesterday it has signed a memorandum of understanding (MoU) with the Dubai Government's investment arm to explore building a massive maritime centre and property development in Johor worth an estimated RM16bil.

The MoU, signed with Dubai World, would explore opportunities for joint development of a maritime centre master plan comprising oil terminal activities, dry docks, a shipyard, conventional cargo handling facilities, logistics parks and real property development in South Johor.

The development would include MMC’s 2,255-acre property in Tanjung Bin, Johor, the company said in a filing with Bursa Malaysia". For more, go to the news report in The Star today.

From the weekly chart below, we can see that MMC is in a medium-term uptrend. Nevertheless, the share price has been drifting lower in a short-term downtrend. The positive news on the MOU has prompted the share price to break above the short-term downtrend at the RM7.70 level. The share price went as high as RM8.30 before retreating. As at 4.15 pm, MMC was trading at RM7.90.

Over the next few days, MMC share price may re-test the breakout level of RM7.70 again. If the share price can hold above the breakout level, MMC's uptrend is likely to continue.


Chart : MMC's weekly chart as at September 24 (courtesy of Quickcharts)