EATECH’s share price rose an impressive 2.5 sen (5.8%) yesterday, closing at RM0.455 on the back of exceptionally healthy trading volume, with 5.2m shares exchanging hands - equivalent to around 2.6x of its daily average. Yesterday’s move can be interpreted as a breakout from its previous resistance of RM0.435-0.445, potentially signalling a reversal after its long downtrend since March. Likewise, a “Golden Crossover” had emerged between its 20-day and 50-day SMAs, with key-indicators also showing positive signs – MACD rising above zero and Signal line, while RSI continues its uptrend. We believe that combined, these are good indicatives of a move higher. From here, sustained followthrough should see the share having a clear path towards overhead resistances at RM0.49 (R1) and RM0.53 (R2). Conversely, a decisive break-below its aforementioned resistance-turned-support of RM0.435-0.445 (S1) is deemed as highly negative, with the share potentially capitulating back towards its low at RM0.35 (S2).
source: Kenanga Research - 20/09/2017
E.A. TECHNIQUE (M) BERHAD
The Group are principally an owner and operator of marine vessels where the business is focused on marine transportation and offshore storage of O&G and the provision of port marine services.
