Trading Buy – Eng Teknologi Bhd (RM1.48) Bursa Malaysia Stock Code 8826
Eng Tek‘s share prices dipped sharply over the past week after the company operation was affected by the Thailand flood. The daily candle broke through the RM1.60 strong support and hasrebounded after hitting a low of RM1.43. The stochastic oscillators are oversold, as with the RSI indicator.
The MACD remains negative, but is decline has abated and now points to a technical rebound.The immediate resistance is the RM1.60 level. The next support is at RM1.43. With the impendingtechnical rebound there could be trading opportunities for risk takers. We recommend a Tradingbuy. Beyond RM1.60 is the RM1.75 resistance.
by Mercury Securities Dated 28th Ocktober 2011
