Tuesday, September 21, 2010

MISC - Potential To Test RM9.1

MISC hit a high of RM9.1 on 14 Sep 2010. While the ability to reach a high of RM9.1 was a bullish move, the candlestick ended on the weak side with an inverted hammer pattern. When this pattern appears during an uptrend, it usually points to weakness for the next few days. This was evident from the price chart.

The price of the stock is now near its 50 day moving average. With the 2 day RSI forming an up tick, it is likely for the stock to move up in the next few days. However, the bearish crossover in the MACD chart points to a potential of a further down swing. Support is at RM8.7 level and resistance is at RM9.1 level. So long as the stock stays above its 50 day moving average, the bulls are safe.

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