MMC- has a bullish breakout

MMC broke above its gradual downtrend line, RR at RM2.85 in mid-November. After hit intra-day high of late November of RM3.00, the stock pulled back to rest at the downtrend line (R-R1). If the price does not do below the downtrend line, the breakout is still valid and the stock may launch into an upleg. This upleg could be very significant since MMC has been in this downtrend for 3 years.

There have been reports that MMC, together with Mudajya, is likely to be appointed as PDP for MRT Line 2. In addition, MMC is also reported to be the frontrunner for the spine road project from Kota Baru to Simpang Pelangi (in Bentong, Pahang) valued at RM8 billion. Finally, the Tanjong Bin power plant's maintenance program is nearing its completion (expected in February 2014). The completion of the maintenance program will give a boost to the earning of Malakoff  and by extension MMC. It may also restart the listing exercise for Malakoff which was shelved due to the unplanned power outages at the Tanjong Bin. For more, go here. With the plethora of good news to come, the stock has found a new leaf of life.

Based on technical breakout, MMC could be a good stock for trading BUY. It could even be a good stock for a medium-term investment if it can land the two big jobs mentioned earlier.


Chart: MMC's weekly chart as at Dec 4, 2013 (Source: Interachart.com)

Note:
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, MMC.