Esso - Technical Short Term Buy

Short-term buy (TECHNICAL)  on dips for ESSO at the support areas of RM4.90 Esso Stock Code: 3042  RM5.71

click to enlarge above ESSO weekly chart.

Recommendation

ESSO made a major weekly Wave 2 low at RM2.42 in June 2010 with grossly oversold and bullish signals. Due to its positive crossovers from the weekly CCI, DMI, MACD, Stochastic and Oscillator indicators, we believe ESSO could soon test the resistance levels indicated above in the short-to-medium term.

SHORT-TERM BUY (TECHNICAL)  on dips for ESSO  at the support areas of RM4.90 and RM5.71, with significantly strong upside target areas of RM6.00, RM6.82 and RM7.20. Stop-loss is at RM4.88.

below: click to enlarge
Esso Malaysia Berhad (ESSO) manufactures and markets petroleum products and operates an oil refinery in Port Dickson, which has a licensed capacity of 75,000 barrels per day. The  company is a subsidiary of Esso Eastern Incorporated, which is wholly owned by Exxon Corporation and incorporated in the USA.

by Maybank Investment